Author(s): Simeana Beshi, Bedri Peci
This study treat the harmonization of VAT legislation in theory and practice in order to approximate the policy of European integration in an area without internal frontiers that guarantees the fundamental freedoms of movement of capital, goods, individuals, and services, in a single market of integrated. Fiscal policy is determined by the socio-economic and geo-political factors of the country, but recently the European perspective, including the criterion of harmonization with the “acquis communautaire”, has also influenced it. Analyzing the applicable legislative framework will assess the extent to which national legislation is in line with European Union VAT legislation and the efforts of countries to harmonize. The methodology used in this paper is quantitative and qualitative analyses. Some of the methods that will be use during this paper are descriptive, comparative and synthesis method. In general, the paper will address the question of why fiscal harmonization is actually needed and what the consequences of a competitive situation for member countries might be. The findings emphasize that there can be no talk of full harmonization because the design of the national tax system is the competence of the MS. Finally, the benefits of VAT for the state budget will be assessed.