Directive 2014/107/EU amends Directive 2011/16/EU to enhance the mandatory automatic exchange of information among Member States regarding taxation matters. The directive responds to the growing challenge of cross-border tax fraud and evasion, aiming to increase the effectiveness of tax collection by expanding the scope of information exchanged to include various categories of income and capital. This amendment includes new provisions for reporting and due diligence rules, ensuring alignment with the OECD's Common Reporting Standard and related international standards.

Member States are required to adopt necessary measures by 31 December 2015, applying them from 1 January 2016. The directive incorporates specifications for the automatic exchange of taxpayer information, detailing the types of accounts and categories subject to reporting. Furthermore, it mandates compliance with data protection rules while emphasizing uniformity in implementation to prevent distortions in the internal market.