Denmark seeks agreement on 2028 Customs Reforms and Energy Taxation Directive
From 1 July to 31 December 2025, Denmark holds the Presidency of the Council of the European Union. During its six-month term, Denmark has set ambitious goals to conclude major EU legislative files, notably on 2028 customs reform and the revision of the Energy Taxation Directive (ETD).
The Council of the European Union is led by a rotating presidency, which changes every six months among EU member states. This system allows each country to help set the agenda, chair meetings, and facilitate dialogue on key legislative files.
2028 Customs Reforms
On the proposed 2028 Customs Reform, Denmark builds on a negotiating mandate secured by the previous Polish presidency regarding the Union Customs Code. It plans to lead talks with the European Parliament with the aim of finalizing an agreement at the December 12 ECOFIN Council. Concurrently, Denmark seeks to secure member state-level deals on two related texts: a council regulation introducing simplified tariff treatment for distance sales and abolishing customs duty relief thresholds, and a directive on VAT rules eliminating the €150 threshold and addressing customs warehouses.
Energy Tax Directive
For the ETD, Denmark is pushing to reach a general approach by the November 13 ECOFIN Council after four years of technical discussions. A decisive COREPER meeting on 9 July will see ambassadors consider Denmark’s proposal to have technical teams finalize a compromise text. Unlike previous presidencies that settled for progress reports, Denmark is the first to explicitly pursue a deal within its term.
Carbon Border Adjustment Mechanism (CBAM)
The Presidency will prioritise reinforcing the Carbon Border Adjustment Mechanism (CBAM) regulation to prevent carbon leakage, thereby supporting both the green transition and European industry.
Other taxation priorities
The Danish Presidency will prioritise initiatives to counter tax evasion and avoidance, ensuring fair taxation at the international level. This includes updating the EU list of non-cooperative tax jurisdictions and enhancing the tools used by the Code of Conduct Group to identify harmful tax practices.
The Presidency will also support continued efforts to strengthen administrative cooperation, including revising or expanding the Directive on Administrative Cooperation (DAC). Such revisions aim to improve rules and procedures for information exchange between tax authorities, fostering good governance both within the EU and globally.
To boost European competitiveness, the Presidency will advance the EU’s tax simplification agenda, reducing burdens on businesses and tax administrations. It will work to secure robust governance frameworks and ensure Member State involvement in streamlining existing and future tax rules.
