Tax exemption for non-profit organisations across EU

Within many member states of the European Union donations to local non-profit organisations are exempt from income tax. However, a donor in one member state giving to an organisation in another faces trouble getting a deduction for the donation.

Currently, one has to go through unnecessarily complex processes in relation to one's own state or use a 3rd party organisation like Transnational Giving Europe to facilitate it. Consequently, it is harder for non-profits to work across EU than it is for companies.

The proposal is to make it EU law to treat similar organisations in other member states as if they were in one's own, for purposes of taxation. This ties into the freedom of movement for capital, and is a natural extension of the existing arrangements, another step towards a true trans-European non-profit culture.

It may require a kind of centralised organisation register, with a unique ID. This register could in addition provide for further assistance to non-profits.