A coherent tax framework for the EU's financial sector

Amendments tabled for the plenary sitting on this text, in their own numbering series. This is a different set from the committee amendments tracked elsewhere on AmendEU, and is not counted in any of the site’s amendment totals.

1. Amendment 1Motion for a resolution · Paragraph 1
   Current text

   1. Notes that the EU-wide VAT exemption for financial services has resulted in a VAT policy gap; highlights that in the absence of VAT revenues from financial services, Member States have introduced 91 sector-specific taxes to tax the financial sector and mitigate these revenue losses, resulting in a highly fragmented tax landscape; notes that this fragmented tax landscape generates additional operational and administrative costs and increases structural barriers to the cross-border expansion of financial services providers, thus weakening the EU’s financial sector and its investment capacity and undermining the objectives of the SIU and the Banking Union;

   Amendment

   1. Notes that following the great financial crisis, Member States have introduced 91 sector-specific taxes to tax the financial sector, resulting in a highly fragmented tax landscape; notes that this fragmented tax landscape generates additional operational and administrative costs and increases structural barriers to the cross-border expansion of financial services providers, thus weakening the EU’s financial sector and its investment capacity and undermining the objectives of the SIU and the Banking Union;

   official amendment document ↗
2. Amendment 2Motion for a resolution · Paragraph 8
   Current text

   8. Emphasises that the insufficient data on the effective tax burden across the EU financial sector obstructs evidence-based policymaking and the assessment of policy impacts on market behaviour, competition and financial stability; underlines the need for improved transparency and data collection as a prerequisite for coherent reform of financial sector taxation;

   Amendment

   8. Emphasises that the insufficient data on the effective tax burden across the EU financial sector obstructs evidence-based policymaking and the assessment of policy impacts on market behaviour, competition and financial stability; underlines the need for improved transparency and better use of existing data as a prerequisite for coherent reform of financial sector taxation;

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3. Amendment 3Motion for a resolution · Paragraph 27
   Current text

   27. Calls on the Commission to review the impacts of the current VAT regime on the financial sector and to publicly share this analysis; calls on the Commission to consider policy options to address identified distortive impacts, like more effective VAT grouping and options for reforming the VAT exemption, with a view to bringing forward a proposal to reform the VAT rules for the financial sector; emphasises that any such reform should reduce irrecoverable VAT and the fragmented application of rules, improve legal certainty and tax fairness, and strengthen the competitiveness of EU financial markets, while safeguarding financial stability and minimising regulatory arbitrage between Member St…

   Amendment

   27. Welcomes the comprehensive study published by the Commission in June 2026 on the taxation of the financial sector1a; highlights the conclusions of the study, which confirm that due to the VAT exemption, providers of financial services do not have the right to deduction, which in turn means that many of the sector’s input purchases are subject to VAT, resulting in a tax burden that does not appear on invoices and therefore is commonly referred to as ‘hidden’ VAT; stresses that, according to the study, the original technical rationale for the VAT exemption no longer remains fully valid, and that, combined with divergent national sectoral taxes, the current tax framework creates high compli…

   Excerpt — full text in the official PDF.
   official amendment document ↗
4. Amendment 4Motion for a resolution · Paragraph 33
   Current text

   33. Acknowledges the lack of progress made on the FTT proposal in the Council, despite extensive debate, both under unanimity and enhanced cooperation, and takes note of the Commission’s announcement about the withdrawal of the FTT proposal in its 2026 work programme;

   Amendment

   33. Acknowledges the lack of progress made on the FTT proposal in the Council, despite extensive debate, both under unanimity and enhanced cooperation, and regrets the Commission’s announcement about the withdrawal of the FTT proposal in its 2026 work programme; calls on the Commission to ensure that any proposal for a coherent framework for taxing the EU financial sector presents a concrete plan to address the policy gap created by the withdrawal of the FTT proposal; emphasises that any new proposal should be no less ambitious than the original FTT proposal in ensuring a fair contribution from the financial sector under clear and predictable rules;

   official amendment document ↗
5. Amendment 5Motion for a resolution · Paragraph 34 a (new)
   Amendment

   34a. Highlights the fact that coordinated temporary windfall taxes can complement long-term sector-wide taxation by providing short-term revenue in times of crisis without destabilising markets or distorting long-term commercial activity; notes that, in recent years, the profitability of EU banks has increased, reaching historically high levels1a; calls on the Commission to bring forward a legislative proposal for the temporary taxation of exceptional profits in the financial sector, ensuring that the sector makes a fair and coordinated contribution at EU level in periods of extraordinary macroeconomic circumstances; _________________ 1a European Banking Authority, ‘Risk Assessment Report of…

   Excerpt — full text in the official PDF.
   official amendment document ↗
6. Amendment 6Motion for a resolution · Paragraph 35 a (new)
   Amendment

   35a. Notes that financial sector tax regimes should not be used to attract profits and financial activities for tax-driven profit shifting rather than genuine economic activity; notes that exceptionally large volumes of foreign direct investment remain concentrated in low-substance financial structures, providing evidence that such practices persist; regrets that this undermines Member States’ revenues, tax sovereignty and the objectives of the Savings and Investment Union;

   official amendment document ↗