The national tax policy should not be in conflict with the tax policies of the other countries;
Tax policy should prevent double taxation.
The tax harmonization in the European Union has set itself such purposes as:
The abolition of the tax limits in order to ensure equal competitive conditions for businesses;
The integration and unification of the European Union internal market as the main engine of integration processes in the region;
Bringing the tax systems to conformity [3].
The experience of the European Union member states showed that the system of indirect taxes is more a subject to harmonization, as they have the greatest impact on mutual trade, pricing goods, and account for a large share of tax revenues in the budgets of all European Union states. It should be noted that in the development of mutual trade, the procedure for collecting VAT is of considerable importance. Currently, all countries of the European Union have turned into a «country of destination», which provides a zero rate of VAT on exports of goods (works and services) and the VAT refund from the budget on the resources used for exported goods. The experience shows that some defects made in the tax laws on VAT indicate the presence of double taxation. The fact is that neither the Agreement nor the national legislation of the countries clearly define the concept of export of services and activities. The result is a situation where the work and services sold by a non-resident are taxed both in the country of origin and the country of destination. To eliminate this negative practice, it is necessary to develop a single list of exported and imported works and services, as well as a uniform tax system. One of the important problems of overcoming obstacles appeared during the process of harmonization of tax systems in the European Union is to harmonize the profit tax systems [2].
Currently, all countries of the European Union are in the process of reforming the tax laws. The practice shows that the tax legislation is developing in the direction of harmonization, as only in these conditions it is possible to allow equal competitive conditions and free flow of capital, goods, services, labor.
References
1. European Problems// p. 2-3. Source: http://www.grin.com/en/ebook/118279/european-problems-challenges-of-the-european-union