Value added tax harmonization / Political economy

» Personal Loan No Credit Check, Online Economics » Political economy » Topics begins with V » Value added tax harmonization

Page modified: �roda, lipiec 13, 2011 01:55:22

Value added tax harmonization, the national adjustment on 11 April 1967 of the European community imported value added tax (also: Value added tax or: VALUE added tax VAT) within the European union. The harmonization of this indirect tax serves the standardization of the European domestic market as tax area.

Basis of the value added tax harmonization is by the Council of Ministers at that time of the European community issued the sixth guideline 77/388/EWG of the advice of 17. May 1977 for the harmonization of the legislation of the member states over the value added taxes - common value added tax system: uniform taxpayers assessment basis (Official Journal No. L 145 of the 13/06/1977 P. 0001 - 0040)

For the tax harmonization as a strategic goal of the European Union the central management taxes and customs union of the European commission (TAXUD) is responsible.

The harmonization is reached on national level by the change of the rate of assessment in the value added tax law (UStG) and effectuation apart from increased public revenues also an increase of the inflation.

In addition, for the inland Germany is the comparison with the adjacent neighboring countries of economic importance.

At the tax harmonizations from 1 January 1993, from 1 April 1998 and from 1 January 2007 of altogether 14% to 19% under maintain the reduced control item of 7% was involved Angela Merkel as a cabinet member. The reduced value added tax set for labor intensive services is applicable after the guideline the advice of the European Union from 14 February 2006 on national level however only until 2010.