New study on SMEs’ costs to comply with tax obligations

Today we published the final report of the new study on ‘Tax compliance costs for SMEs’.

The study, which was conducted in 28 European countries (EU27+UK) among more than 3,500 enterprises in 2019, focuses on the obligations SMEs face when complying with tax requirements. It also highlights how tax systems can impact companies’ decision-making and economic activity as well as how they cope with these separate systems.  

SMEs face proportionally higher costs than larger enterprises. SMEs account for almost all EU27+UK non-financial business sector enterprises, so even small improvements in the regulatory environment for SMEs may have a big impact on the EU’s economy.

The study suggests potential national- and EU- level improvements, including

• general simplification of tax obligations for companies, and SMEs in particular
• adopting one-stop-shop solutions
• increasing the digitalisation of national fiscal systems

The study also provides an overview of the COVID-19 relief measures adopted by EU countries in 2020 and 2021 to support businesses.

Documents

Report on study of tax compliance costs for SMEs