Less paperwork for second-hand clothing sales and clearer information on smartphone durability and repairability. The EU is preparing another round of tax and energy and tyre labelling simplification to make rules easier for businesses and consumers alike.
The European Commission has unveiled two new simplification packages. The biggest savings are expected from a sweeping overhaul of corporate tax rules, while a second set of changes targets labels for appliances and tyres.
The plans also include relief for casual users of online marketplaces, with lighter reporting duties for small-scale second-hand sales. Overall, Brussels estimates the measures will save businesses and public authorities more than €8 billion a year, including €3.4 billion in administrative costs alone.
The Commission groups both proposals under its so-called omnibus approach — large legislative packages that bundle multiple rule changes into a single push to simplify EU law. According to Valdis Dombrovskis, Commissioner for Economy and Productivity, the total savings from this now dozen-strong series of omnibus packages have climbed above €18 billion. That is close to half of the €37.5 billion target set for the end of the current mandate in 2029.
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“The world will not wait for Europe to do what it must to secure our long-term prosperity. We must act with urgency and ambition, and we must deliver,” Dombrovskis said.
Tax overhaul
The first and largest part of the reform focuses on taxation. The Commission wants to strip away barriers to cross-border investment while keeping safeguards against tax evasion and aggressive tax planning.
One of the most tangible changes for ordinary citizens comes in the form of lighter rules for online marketplaces such as Vinted or eBay. Platforms currently need to report sellers in some cases after just 30 transactions.
Under the new threshold, reporting would only kick in once a seller earns more than €3,000 a year. Brussels says this would remove reporting obligations for over 10 million private individuals across the EU. The aim is to ease the burden on people selling second-hand goods occasionally — from clothes to furniture and electronics — without weakening tax enforcement.
Easier cross-border business flows
Another key change targets cross-border payments of dividends, interest and royalties between companies in the EU. The Commission wants to remove procedural barriers that often slow down investment decisions.
In practice, a company paying royalties to an affiliate in another member state would no longer face withholding tax hurdles. Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra gave a blunt illustration of what that means in real life. “No more lengthy upfront procedures, no need to deal with complex and often cumbersome refund procedures that sometimes in reality take years to complete,” he said.
The proposal also simplifies rules around interest deductibility and trims overlaps in EU tax law. Nine separate legal texts on administrative cooperation would be merged into a single framework.
Digital shift for energy labels
Alongside tax reforms, the Commission also proposed changes to energy and tyre labelling rules. The goal is to keep consumer information clear while bringing the system into the digital age. Paper labels could increasingly give way to QR codes or electronic displays. The Commission says consumers will still get clear, comparable information when buying products, helping them choose more energy-efficient options.
In turn, this is expected to push manufacturers towards better-performing appliances and tyres, lowering energy bills and running costs for households and businesses alike. Newer labels including those for smartphones and other every-day products may also include data on durability and repairability.
The changes would apply to products sold through installers or kitchen studios, where buyers often never see the item on display before purchase. The proposal also reduces duplicate reporting and improves data sharing across EU databases.
Brussels estimates the energy labelling changes alone will save up to €125 million a year. Dombrovskis insisted the reforms do not weaken standards. “We are cutting red tape without cutting corners,” he said.
Political hurdles ahead
Both proposals now head to the EU governments and the European Parliament. Tax measures will face the toughest route, as they require unanimous approval from all member states. Energy labelling and other single-market rules follow the standard legislative path, where the Council decides by qualified majority together with the Parliament.
The Commission argues the reforms respond directly to repeated calls from member states for a more competitive European economy. “Today’s simplification package sends a clear message: Europe is serious about competitiveness, making it easier for our businesses to grow, invest, and succeed on its soil,” Hoekstra said.
