Open AccessFiscal Sovereignty vs. Harmonized Fiscal Policies. Application of Split VAT in Romania – A Failed Project. Comparative Law
Author(s) -
Ramona CIOBANU,
AUTHOR_ID
Publication year - 2022
Publication title -
bulletin of the "transilvania" university of braşov. series vii, social sciences and law
Language(s) - English
Resource type - Journals
eISSN - 2066-771X
pISSN - 2066-7701
DOI - 10.31926/but.ssl.2021.14.63.3.4
Subject(s) - sovereignty , harmonization , member states , european union , member state , competition (biology) , payment , international economics , state (computer science) , single market , domestic market , economics , business , fiscal policy , direct tax , international trade , tax harmonization , indirect tax , public economics , value added tax , tax competition , political science , law , tax reform , finance , macroeconomics , algorithm , ecology , computer science , acoustics , biology , physics , politics
Each Member State of the European Union establishes its own fiscal policy, under its sovereignty, according to its interests. Nevertheless, requirements such as the proper operation of the Single Market, the protection of fair competition, the fight against aggressive tax planning and against tax evasion, the stability of the European Economic Area have led to the adoption of European rules on the harmonization of the Member States’ tax laws, with an emphasis on indirect taxes. Implementation mechanisms have been established so that non-compliance with them leads to the inapplicability of the non-harmonized internal rules. This is also the case for Romania's unsuccessful attempt to apply split VAT, while other Member States apply this method of VAT payment/collection.