engleski

Transfer to Euro and Fiscal Harmonisation of Value Added Tax (VAT)

Introduction of a single currency EURO caused certain economic disharmony, which had direct effects on VAT threshold and original revenues of particular "in" and "out" states. The conformity problem of transfer from ECU to EURO is still unfinished. The EU Commission produced several directives in that sphere. However, the most important was Sixth Directive, which set conformity between VAT thresholds in accordance with the same Directive and national monetary legislations. A single currency deepened a single market, redefined macroeconomic policy and caused the loss of national autonomy. Transfer to EURO had a certain impact on Community legislation and national laws of member states. EURO replaced ECU on January 1, 1999. Simple implementation of conversion rules on EURO caused certain problems, especially in the fiscal sphere. Introduction of a single currency did not affect directly the fiscal policy of "in" states. However, adjustment of Community fiscal legislation and instruments of national policies to a single currency pointed out some unexpected problems regarding indirect taxation.

EURO ; VAT ; economic disharmony ; fiscal policy

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