EU Parliament pushes forward major VAT reform debate for financial services

The European Parliament has proposed over 200 amendments to its draft report on a future EU tax framework for banking and insurance.
The core VAT‑related elements include:
- Narrowing the VAT exemption for fee‑based B2B financial services (e.g. advisory, processing, platform fees);
- Potential integration of Insurance Premium Tax into VAT;
- Modernisation of VAT rules for neobanks, crypto‑assets and digital financial services.
A committee vote is scheduled for 26 April 2026, with possible plenary adoption in May–June 2026, marking renewed EU‑level momentum on a highly sensitive VAT topic.

EU Parliament Proposes 200 Amendments to Modernize VAT and Tax Rules for Financial Sector

The European Parliament proposed over 200 amendments to its draft report on tax reforms for the financial sector.
VAT reform is a central focus, including updates for cross-border VAT groupings and new markets like crypto, derivatives, and neobanking.
There is consensus that the current VAT treatment of financial services is outdated and distortionary.
A major proposal is to consolidate Insurance Premium Tax into the VAT regime, despite insurance currently being exempt from VAT.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.