Tax
Definition and types
- income tax: is a percentage of individual earnings given to the government;
- consumption tax: is the VAT (Value Added Tax) and excise duties on tobacco, alcohol, energy products and some specific goods, such as coffee in Germany;
- property tax: is based on the value of land and property assets;
- tariffs/customs duties: tax on imported goods intended to support national businesses;
- excises: indirect tax charged on the sale of particular goods;
- environmental tax is an additional cost added to the price of buying or using polluting products or activities, which discourages their consumption and production;
- capital gains (type of tax levied on capital gains, profits an investor benefits from when a person sells a capital asset for a price that is higher than the purchase price);
- inheritance tax: is a tax paid on the money or property that a person inherits from another person after that second person dies.
Find out more about the system in each country here.
Did you land your dream job? Congratulations! As you probably know, starting work also means that you start paying income tax, based on your revenue.
The country where you are resident for tax purposes can tax your total worldwide income, earned or unearned. This includes wages, pensions, benefits, income from property or from any other sources, or capital gains from the sale of property.
Each country has its own definition of tax residence:
Find out here how income tax works, if you spend time in more than one EU country.
Tax fraud and tax evasion
When a person or company intentionally does not pay the tax due, the money is lost from public budgets. This happens when an individual or business:
deliberately provides false information in a tax declaration, or pays less than the full amount;
stores money in foreign bank accounts without reporting it or paying tax on it;
carries out ‘aggressive tax planning’ by exploiting the limits of the law to minimise tax bills.
What are the consequences?
Tax fraud and tax evasion limit a country’s ability to raise money and implement economic and social policies. That could mean cuts in funding for public services such as health care or education.
My government & the EU
who does what?
Responsibility for combating tax fraud and evasion lies with individual countries. However, in an increasingly globalised world, the EU provides a framework and support for dealing with cross-border tax issues. EU legislation facilitates collaboration between national tax authorities, for example.
Find out how the EU fights against tax fraud and tax evasion.
‘Tax Fraud and Tax Evasion EU: The missing part’: watch the video.
Counterfeiting
Learn how to avoid buying fake products
Intellectual Property Rights (IPR) ensure that creative and inventive efforts are rewarded and that investments in new and more efficient products are encouraged. They stimulate the creation of jobs in today's knowledge-based economy.
IPR infringements are harmful as they reduce business and government revenues, stifle investment and innovation and hinder economic growth. They result in job losses and reduced wealth creation (Gross Domestic Product or GDP). Furthermore, goods that infringe on IPR risk harming consumers, as they are less likely than others to comply with health and safety standards.
Online guide to identifying fake goods.
The EU Member States’ customs authorities are on the frontline in preventing goods infringing Intellectual Property Rights (IPR) from entering the EU market. Find out more about the EU legislation framework.
‘The real price of fake goods’: watch the video.
foundations,
charity donations
In some countries, when you give money to non-governmental organisations (NGOs), foundations, charities – from those funding medical research to those maintaining heritage buildings – you can get tax relief.
Belgium and Romania are among the countries in which you can mention charitable donations on your tax declaration at the end of the year. Some of what you gave is then refunded to you (provided you donated to a registered charity).