International Journal of Law and Management · 2008 · 14 citations · 0 references
Public AffairsPublic FinanceTax LawTax PolicyTaxationValue-added TaxCross-border Excise TaxationCross-border TaxationEuropean IntegrationIndirect TaxationTax HarmonizationTax ReformEuropean TaxationExcise HarmonizationFiscal Neutrality InHarmonization Of Excise TaxesHarmonized Value-added TaxInternal Taxation DiscriminationPartial HarmonizationTax Rate Harmonization
Purpose The correct functioning of the European Union Single Market requires the elimination of discriminatory or protective internal taxation of goods. This paper aims to provide an overview of developments in indirect tax harmonization within the European Union (EU). Design/methodology/approach The approach is to provide a history of tax harmonization and a description of the present functioning of the system within the EU. Findings The paper illustrates that through partial harmonization of indirect taxes (value‐added tax and excise duties) the EU has reached a considerable degree of fiscal neutrality. The attitudes of Member States suggest that closer harmonization (or even unification) of tax rates may not be considered. Originality/value The paper provides a summary of the progress of tax harmonization in the EU.