Raise tax in European shelter (7)
I believe the answer is:
elevate
'raise' is the definition.
(I know that raise can be written as elevate)
'tax in european shelter' is the wordplay.
'tax' becomes 'vat' (UK Value Added Tax).
'in' indicates putting letters inside.
'european' becomes 'E' (abbreviation e.g. EU).
'shelter' becomes 'lee' (as in lee side, the side sheltered from wind).
'e'+'lee'='elee'
'vat' placed within 'elee' is 'ELEVATE'.
(Other definitions for elevate that I've seen before include "Raise or lift" , "Lift up or ennoble" , "To raise in level" , "'Raise, upgrade (7)'" , "Uplift" .)