REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Mid-term evaluation of the Fiscalis 2020 programme
Date: 2019-02-07
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: EU programme, European tax cooperation, administrative cooperation, exchange of information, fraud, information system, tax authorities, tax avoidance, tax evasion, tax law

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 7.2.2019  COM(2019) 59 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Mid-term evaluation of the Fiscalis 2020 programme {SWD(2019) 15 final}  
 
 
1.  BACKGROUND 

Regulation  (EU)  No  1286/20131  established  the  Fiscalis  2020  programme  as  a  multiannual 
action  programme  to  improve  how  taxation  systems  work  in  the  EU.  In  accordance  with 
Article 17(1) and (2), an external study was commissioned to support the mid-term evaluation 
of  the  programme.  Its  results  are  presented  in  the  attached  staff  working  document  and 
constitute the basis for this report.  

The purpose of the mid-term evaluation was to assess the Fiscalis 2020 programme since its 
launch on 1 January 2014 up to the halfway point of its implementation (31 December 2017). 
The  evaluation  took  into  account  the  programme’s  full  range  of  funded  activities  and 
stakeholders. 

The current  report aims  to  chart the progress  made in  the achievement of the programme’s 
objectives,  the  efficiency  of  resource  usage  and  the  added  value  of  the  programme  at  EU 
level. The report also addresses the simplification and continued relevance of the objectives 
as well as how the programme has contributed to the EU’s priorities of smart, sustainable and 
inclusive growth. 

2.  RELEVANCE 

The  Fiscalis  2020  programme  builds  upon  previous  versions  of  the  programme,  which  has 
been in place for over 25 years. It allows for coherent implementation of EU law in the field 
of taxation in light of current challenges by ensuring the exchange of information, supporting 
administrative  cooperation  and  enhancing  the  administrative  capacity  of  tax  authorities. 
There are 34 countries that currently participate in the programme: 28 EU Member States and 
6 candidate and potential candidate countries2. 

The programme has been around too long for most stakeholders to meaningfully consider the 
situation  before  its  launch.  The  common  IT  systems,  i.e.  European  Information  Systems, 
which take up around 75 % of the programme’s available funds, have long been an integral 
part  of  the  national  and  EU  taxation  landscapes.  There  is  consensus  among  national  tax 
administrations that the Fiscalis 2020 programme is both necessary and relevant and that it 
corresponds  to  real  needs  and  concerns.  The  programme  actions  are  appreciated  and 
generally  correspond  to  the  needs  of  administrations.  In  particular,  networking  and 
exchanging ideas are highly valued and seen as key aspects of all programme activities. The 
need for and relevance of most European Information Systems is self-evident; in many cases 
they  define  the  possibility  for  the  essential  exchange  of  information  according  to  EU  law. 
Supporting activities like IT training sessions are also highly appreciated by stakeholders. 

Looking towards the underlying need for systems to exchange information, systems like the 
Mini-One-Stop-Shop address the need for an efficient exchange of information for the proper 
functioning of the single market. This also addresses the need to create systems that reduce 
the  resources  required  by  administrations  and  the  administrative  burden  on  taxpayers.  For 
example, stakeholders point out that the Mini-One-Stop-Shop was developed specifically to 
enable  new  VAT  legislation  to  be  implemented  without  creating  further  administrative 

1  Regulation  (EU)  No 1286/2013  of  the  European  Parliament  and  of  the  Council  of  11 December  2013 
establishing an action programme to improve the operation of taxation systems in the European  Union for 
the period 2014-2020 (Fiscalis 2020) and repealing Decision No 1482/2007/EC 

2  Albania,  Bosnia  and  Herzegovina,  the  former  Yugoslav  Republic  of  Macedonia,  Montenegro,  Serbia  and 

Turkey. 

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burdens.  The  costs  for  developing  this  system  came  to  an  average  of  EUR  2.5  million  per 
Member State. On the benefit side, the system distributes more than EUR 3 billion in VAT 
revenues on an annual basis, with an increase of around 15 % each year. The majority of EU 
countries have a net income from the Mini-One-Stop-Shop. 

Without  such  a  Fiscalis  activity,  which  has  created  major  channels  for  the  exchange  of 
information,  there  would  surely  be  a  need  to  find  corresponding  solutions  to  address  the 
existing  needs  and  problems.  Furthermore,  it  is  uncertain  if  such  systems  could  in  fact  be 
implemented  without  a  common  framework  for  coordination  or  a  funding  source  like 
Fiscalis. 

While  national  tax  administrations  are  the  main  beneficiaries  of  the  Fiscalis  programme, 
many economic operators are also involved as users of some European Information Systems 
and  training  modules,  and  sometimes  as  participants  in  specific  joint  actions.  Simplified 
procedures as well as the equal and predictable application of EU law are important for both 
economic  operators  as  well  as  for  tax  administrations.  There  are  many  activities  in  the 
programme that address  these areas of concern. Overall, the Fiscalis programme is relevant 
for  economic  operators  because  its  priorities  and  activities  match  the  underlying  needs  of 
businesses and address the specific problems they face. 

Among the general public, there is little evidence of direct awareness of the programme or 
its  impact.  Indirectly,  the  programme  does  address  problems  that  are  highly  relevant  to 
European citizens and where EU action is considered necessary. In particular, the programme 
improves the lives of European citizens by supporting the correct and effective understanding 
and enforcement of tax legislation across the participating countries. Recent revelations in the 
form of the ‘Panama papers’ have influenced how citizens perceive tax matters and have put 
the topic high on the agenda. Topics such as combating tax fraud, tax evasion and aggressive 
tax planning as well as ensuring the fair and equal application of tax legislation have become 
increasingly relevant in the eyes of European citizens and communities. 

3.  EFFECTIVENESS 

The  specific  objectives  of  Fiscalis  2020  include  supporting  the  fight  against  tax  fraud,  tax 
evasion  and  aggressive  tax  planning  and  the  implementation  of  EU  law  in  the  field  of 
taxation. This is done by ensuring the exchange of information, by supporting administrative 
cooperation  and  by  enhancing  the  administrative  capacity  of  participating  countries  to  help 
reduce the administrative burden on tax authorities and the compliance costs for taxpayers. 

The  role  of  the  European  Information  Systems  is  cross-cutting.  There  are  currently  25 
common IT systems in operation, covering a range of cross-border issues on direct taxation 
and  indirect  taxation  as  well  as  supporting  architecture  and  applications.  Since  information 
sharing  is  a  means  to  achieving  the  other  objectives,  most  importantly  related  to  the  fight 
against tax fraud, evasion and aggressive tax planning and the implementation of EU law, the 
European  Information Systems have contributed strongly  to  all the objectives. Many of the 
systems  are  also  available  to  economic  operators,  allowing  them  to  submit  and  obtain 
information more easily and therefore lighten the burden of reporting obligations.  

On supporting the fight against tax fraud, tax evasion and aggressive tax planning, the 
available evidence shows that the existing information sharing tools and collaboration forums 
can make a significant contribution to the objective. The evidence reveals not only a growing 
use  of  common  IT  systems  as  a  whole,  but  also  compelling  stories  that  explain  how  they 
simplify  the  day-to-day  work  of  administrations.  Contributions  have  been  strongest  in 
fighting  tax  fraud/evasion  in  the  domains  of  VAT  and  excise  (for  European  Information 

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Systems such as the Mini-One-Stop-Shop, VAT Refund, the Excise Movement and Control 
System, eForms or VAT Information Exchange System). Contributions were not as strong for 
the smaller number of IT systems that deal with direct taxation (such as the Tax Identification 
Number on the Europa portal or the Data Dissemination System); these have a smaller scope, 
with proportionately less awareness, participation or lower use levels. 

On supporting the implementation of Union law in the field of taxation by securing the 
exchange of information, the programme has played a crucial role in helping Member States 
communicate with each other in a secure and efficient manner in areas of mutual interest, and 
has therefore enhanced collaboration between them. This aspect of the objective accounts for 
a large proportion of the projects prioritised by means of the annual work programmes, with 
the  evaluation  noting  particular  success  in  supporting  the  exchange  of  information  and 
collaboration necessary as part of VAT and excise legislation. 

On supporting administrative cooperation between tax authorities, this has mostly taken 
the form of joint actions, albeit involving an array of topics and action types. The programme 
has  played  an  integral  role  in  strengthening  cooperation  between  tax  authorities  in  the 
Member States and other participating countries. Evidence of this is most compelling in the 
field of indirect taxation (in particular VAT and excise), where EU competence is strongest 
and  the  level  of  programme  activity  is  correspondingly  high.  Direct  administrative 
cooperation in the form of multilateral controls and participation in administrative enquiries 
is also categorised under this objective. As one of the most popular action types (over 3 000 
officials took  part in  them  in  2014-2017), multilateral  controls  provide ample evidence that 
practical  administrative  cooperation  not  only  takes  place,  but  that  it  is  also  effective. 
Combined with a coordination group, which helps to align working practices and build trust, 
multilateral controls have consistently led to recovered revenue and increased compliance. 

Discrepancies across countries and gaps  in  knowledge, in  addition  to the ever-changing tax 
policy  context,  create  a  need  for  the  programme  to  support  capacity  building  among 
national administrations. This has taken place in the form of several types of joint actions 
as  well  as  dedicated  technical  assistance  measures  provided  by  the  European  Commission. 
The  eLearning  modules  developed  by  the  programme  also  aim  to  build  up  the  capacity  of 
participating officials. 

4.  EFFICIENCY 

The  Fiscalis  2020  programme’s  budget  is  EUR 223  million,  with  EUR 124  million 
committed  in  2014-2017  (representing  56 %  of  the  total  available  budget).  Fiscalis  is  a 
directly  managed  programme,  with  the  Commission  responsible  for  managing  and 
coordinating  it.  Activities  are  financed  mostly  through  grants  (especially  the  joint  actions) 
and procurement (especially the European Information Systems and technical development of 
the eLearning modules). 

The largest part of the Fiscalis budget supports the development, operation and maintenance 
of the European Information Systems, which account for 74.7 % of the committed budget. 
Concrete benefits provided by the IT systems are difficult to quantify, let alone monetise. The 
data do not allow to distinguish between most of the different systems so that costs could be 
compared with proven effectiveness. However, one of the main findings of the evaluation is 
that  the  horizontal  architecture  and  systems  associated  with  indirect  taxation,  such  as  the 
VAT Information Exchange System, the Excise Movement and Control System and the Mini-
One-Stop-Shop, received the most positive assessments and often lead to substantial savings 
for tax administrations and economic operators. 

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involves  exchanging 

Joint  actions  under  the  Fiscalis  2020  programme  totalled  15.3 %  of  the  committed  budget 
over the first 4 years of the programme. They provide national officials with a platform and 
funding to set up meetings on issues of common interest and are therefore at their core about 
fostering  collaboration.  This  collaboration 
ideas  and  practical 
experiences,  exploring  difficult  topics,  new  technological  trends,  business  solutions  and  IT 
approaches, aligning one’s understanding of legislation and practices or encouraging shifts in 
national  policies.  Available  data  for  the  first  4  years  of  the  programme  show  that  a  large 
number  of  individuals  (the  vast  majority  of  whom  are  tax  officials)  take  part  in  the 
programme each year, with fairly stable numbers and in line with historical trends. As with 
the previous funding period, there have been around 4 000 individual participations per year 
during the current programme. Their cost structures vary only slightly between the different 
types of actions supported (from project groups, working visits, workshops and seminars to 
multilateral controls and others). The average cost per participant per action for all types of 
joint  actions  (except  expert  teams)  is  around  EUR 875,  which  is  in  line  with  similar 
programmes. 

Training  activities  under  the  Fiscalis  2020  programme  totalled  3.2 %3  of  the  committed 
budget up to now. Because the development costs of training modules are largely a one-off 
investment, their efficiency and value for money increases with each additional participant as 
this broader reach takes place at little, if any, additional cost. The steady growth in national 
tax  officials  who  have  taken  part  in  the  training  modules  and  downloads  from  the  public 
domain  show  that  there  is  a  need,  and  Fiscalis  2020  training  material  fills  that  gap.  The 
flagship  product  under  this  programme  component  is  the  VAT  eLearning  package,  which 
consists of 12 courses. Overall, around 46 700 tax officials have been trained in 2014-2017 
thanks  to  Fiscalis  2020.  The  eLearning  modules  have  also  been  downloaded  34 950  times 
from the EUROPA website mostly by professional associations or multinationals.  Based on 
the estimations provided by those who have downloaded the modules from the EUROPA site, 
the Fiscalis-sponsored training modules have reached a potential group of 420 000 trainees. 

Although simplification as such is not one of the Fiscalis 2020 programme’s objectives, the 
programme  does  provide  support  to  other  initiatives  that  are  designed  to  simplify  and 
modernise  the  European  taxation  landscape.  The  IT  architecture  that  supports  information 
exchange  between  tax  authorities  (i.e.  the  Common  Communication  Network  and  the 
different  types  of  eForms)  actively  helps  to  simplify  procedures  and  therefore  reduces  the 
time needed to process requests. 

Some  efficiency  gains  have  also  been  achieved  in  terms  of  synergies  between  the  Fiscalis 
2020 and Customs 2020 programmes. While the policy areas for the two programmes differ, 
they share a similar focus in enabling administrations to cooperate and exchange information. 
These  similarities  have  offered  opportunities  for  synergies  in  terms  of  both  administrative 
arrangements  and  joint  work,  including  cross-fertilisation  and  joint  funding  of  shared 
components  such  as  IT  systems  and  similar  approaches  to  human  capacity  building  and 
training. Most of the potential  synergies  have been seen at  central  programme management 
level and integrated IT systems. Given the closely aligned management of the programmes, 
areas for potential synergies and the exchange of information have been identified in relation 
to the development of European Information Systems, with the Multi-Annual Strategic Plan 
for  Customs  European  Information  Systems  offering  a  baseline  for  developing  and 
implementing a corresponding Multi-Annual Strategic Plan for taxation. 

3 The remaining 6.8 % of committed expenses were used for studies to support analysis and further preparatory 

work. 

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On  the  content  of  the  two  programmes,  one  noticeable  exception  is  in  the  area  of  excise 
duties, where competence is often shared between national tax and customs administrations 
and where the two programmes have provided explicit support on identifying fields that are 
of common interest and working together to avoid excise-related fraud. 

5.  COHERENCE 

The  programme  is  internally  coherent,  with  a  high  level  of  consistency  between  the 
intervention  logic,  programme  objectives,  annual  work  programme  priorities  and  projects. 
The  programme’s  design  is  objective-driven,  which  means  that  all  actions  under  the 
programme  must  refer  to  the  objectives  outlined  in  Regulation  (EU)  No  1286/2013.  The 
programme  actions  are  determined  in  accordance  with  the  general,  specific  and  operational 
objectives and the most appropriate method of implementation. 

In  terms  of  external  coherence,  there  is  strong  alignment  between  the  programme  and  the 
Europe 2020 strategy as evidenced by relevant actions and activities. Thanks to its activities, 
the programme supports implementation of EU tax policy, in particular the fight against tax 
fraud,  tax  evasion  and  aggressive  tax  planning.  This  in  turn  helps  limit  the  distortions  to 
competition  and disruptions to  the single market,  which  can arise from interaction between 
the tax systems of the 28 Member States. 

The  involvement  of  candidate  and  potential  candidate  countries  is  positive  in  general,  with 
strong evidence of active participation. So far, the six non-EU countries that are involved in 
the programme have participated in the joint actions of the programme and have even used 
some of the  IT systems  where they have had permission to  do so. However, there is scope 
and room to engage them even further. 

The  one  area  where  there  seems  to  be  a  lack  of  strong  external  coherence  is  in 
complementarities with other EU initiatives besides the Customs 2020 programme. While the 
nature  of  the  programme’s  objectives  and  activities  suggests  potential  synergies  with  a 
number of other programmes and projects, only two examples of practical coordination have 
been identified: one with the Structural Reform Support Programme and the second with the 
TAXEDU  pilot  project  financed  by  the  European  Parliament.  This  highlights  the  fact  that 
there  exist  opportunities  that  are  currently  not  used  enough.  There  is  therefore  a  need  for 
further  coordination  efforts  between  the  different  Commission  departments  and  also  other 
institutions to fully use the potential of existing programmes. 

6.  EU ADDED VALUE 

The Fiscalis 2020 programme and the different types of activities funded offer added value to 
the  work  of  national  tax  administrations  and  economic  operators  by  generating  clear 
efficiency gains and economies of scale. 

The  European  Information  Systems  supported  by  the  Fiscalis  programme  have  led  to 
substantial — albeit hard to quantify — cost savings for national administrations in the form 
of  reduced  IT  spending  and  human  resources  compared  to  a  scenario  without  EU  action. 
Centrally  developed  systems  are  cheaper  to  develop  and  implement  than  28  individual 
national  systems  and  also  avoid  costs  relating  to  interoperability  between  countries.  Where 
the  programme  ensures 
systems  are  split  between  EU  and  national  components, 
interconnectivity and efficient coexistence between the IT systems. By allowing the Member 
States to work together in areas of mutual interest, IT collaboration also offers the potential to 
generate economies of scale. The main purpose of IT collaboration is to implement common 

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IT systems (development of the software, IT solutions and components as well as testing) by 
pooling  resources  in  a  formal  way  and  with  balanced  ownership  between  the  Commission 
and the Member States. 

Joint  actions,  especially  workshops,  working  visits  and  project  groups,  contribute  to  the 
exchange of information and experiences, provide opportunities for networking and improve 
the  understanding  of  common  problems  and  solutions  beyond  what  would  otherwise  have 
been possible. It is also worth noting the role of expert teams, which are a new feature of the 
programme and whose structure allows for enhanced collaboration among Member States on 
complex projects with a high degree of commitment among participants. They are considered 
by most Member States to be an interesting and useful way of aligning and coordinating their 
work,  especially  on  IT  solutions.  Consultation  and  networking  with  colleagues  from  other 
countries  by  means  of  joint  actions  were  considered  as  complementary  to  initiatives  at 
national  level,  helping  to  build  relationships  and  trust  as  well  as  support  the  sharing  of 
experience  and  knowledge.  Common  training  activities  have  also  helped  save  time  and 
money  for  the  administrations  in  certain  countries  thanks  to  the  joint  development  and 
provision of training, which otherwise would not have been available. 

Clear interplay between national and EU action has also been identified within the scope of 
the programme. There was consensus among national programme coordinators consulted that 
Fiscalis  provides  the  possibility  for  action  above  and  beyond  what  participating  countries 
could achieve on their own. This ranges from activities such as administrative cooperation — 
where programme action enhances national processes — to providing arenas for learning and 
coordination  in  the  implementation  of  EU  law  (in  the  case  of  candidate  and  potential 
candidate countries, alignment with the EU acquis). 

The sustainability of results and outputs of the programme is generally high. This includes 
more  intangible  benefits  (such  as  enhanced  networking  and  relationships)  and  tangible 
outputs (including tools, methods, etc.), in particular in relation to improved human capacity 
in national administrations. Nonetheless, there was unanimity among stakeholders consulted 
about the importance of continuing the programme in the future. This is most relevant to 
ensure the sustainability of the European Information Systems supported by the programme, 
and to avoid the potential negative impact that reduced or discontinued funding would have 
on these IT systems. Overall, the evaluation finds that maintaining support for established IT 
systems is necessary to secure the information exchange architecture that has been created as 
well as the many platforms that encompass central, Commission-run components. 

7.  CONCLUSIONS 

The  findings  of  the  evaluation  validate  the  relevance  of  the  Fiscalis-specific  objectives  by 
identifying  clear  needs  for  the  secure  and  rapid  exchange  of  information,  cooperation 
between tax administrations and enhancement of administrative capacity. These needs stem 
from  the growing scope  of EU law and initiatives,  the cross-border nature of problems and 
the persistent  need for convergence between countries.  There has been universal  agreement 
among  the  stakeholders  consulted  that  the  programme  is  needed  to  facilitate  this  exchange 
and cooperation, and that ambitious EU policies would not be possible without such support. 
As a result, the programme’s role in fostering the convergence of approaches, administrative 
procedures and rules is highly relevant. 

Thanks to its three main types of activities (European Information Systems, joint actions and 
training),  the  programme  has  been  effective  in  strengthening  cooperation  between  tax 

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authorities  in  the  EU  Member  States  and  other  participating  countries.  The  programme  has 
provided  the  framework  and  technological  means  necessary  to  work  together  and  share 
information on implementing EU tax law and fighting tax evasion, fraud and aggressive tax 
planning in an increasingly mobile Europe. Evidence of this is most compelling in the field of 
indirect  taxation (in particular VAT  and excise)  where  EU competence is  strongest  and the 
level of programme activity is correspondingly high. 

The  programme’s  overall  structure  and  processes  for  taking  decisions  and  setting  priorities 
are time-tested and broadly appropriate in the eyes of stakeholders both in the Commission 
and  in  participating  country  administrations.  While  its  benefits  cannot  be  monetised, 
comparing the findings on effectiveness alongside spending data and the positive findings on 
operational  efficiency  makes  a  strong  case  that  the  programme  is  cost  effective  in  general. 
The European Information Systems, joint actions and training activities clearly generate value 
for the EU and national  tax administrations by helping them to pool resources (and thereby 
generate economies of scale), increase revenue collection and compliance and operate more 
effectively. Economic operators have also benefited indirectly thanks to better administration 
of tax policy as well as from the direct use of certain IT systems and eLearning modules. 

There is strong internal coherence between the various levels and components of the Fiscalis 
programme.  This  is  the  result  of  several  factors,  including  an  objective-driven  design  that 
ensures alignment of the various levels of intervention logic — from the general, specific and 
operational objectives to the priorities and activities. With regard to the programme’s external 
coherence, there is strong alignment between the programme and the Europe 2020 strategy as 
evidenced  by  the  relevant  actions  and  activities  supported  by  the  programme.  The 
involvement of candidate and potential candidate countries is positive in general, with strong 
evidence of active participation and possibilities to engage these even further. 

The  programme  has  been  effective  in  providing  solutions  for  problems  with  a  clear  EU 
dimension.  In  particular,  the  programme  adds  value  by  providing  a  forum  for  discussion, 
exchange of experiences and networking between Member States that would not be possible 
without Commission support. Fiscalis has also helped to create a framework for the exchange 
of  information  thanks  to  a  variety  of  IT  systems  and  activities.  These  lead  to  both  tangible 
and intangible benefits of scale and coordination. The clear EU component and the fact that 
the  same  results  would  be  difficult  or  impossible  to  achieve  without  the  programme  to 
support  them  —  in  particular  in  terms  of  necessary  maintenance  of  European  Information 
Systems — also leads to the conclusion that continued support through programme funding is 
relevant and advantageous from the perspective of EU added value. 

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