EU: EC Commissioner answers question on digital taxation in Europe; resolution on role of simple tax rules and tax fragmentation in EU competitiveness
Reports on recent EU tax developments
European Commissioner (EC) Wopke Hoekstra on September 29, 2025, answered a question submitted by a member of the European Parliament regarding the EC’s views on Canada's decision to repeal its digital services tax (DST), as well as whether the EU is facing external pressure from third countries regarding its own DST proposal and an update on the current state of play regarding digital taxation in Europe.
Hoekstra declined to comment on Canada’s decision but noted that the EC continues to favor a multilateral solution on digital taxation. Hoekstra also noted that significant work has already been undertaken by the OECD as part of the Two-Pillar solution, and despite the discussions on Pillar One being temporarily on hold, they will be resumed by the end of the year once a solution on Pillar Two is found.
Read an October 2025 report prepared by KPMG’s EU Tax Centre
In addition, the European Parliament on October 9, 2025, adopted a resolution on the role of simple tax rules and tax fragmentation in European competitiveness, stressing the need for simpler, predictable, and better-coordinated tax systems across the EU.
Resolutions adopted by the European Parliament are not binding on the EU Council or the EC but must be considered by the EC and member states when proposing or agreeing to new rules.
Read an October 2025 report prepared by KPMG’s EU Tax Centre