The fiscal union in the EU (an overview)

Abstract

This paper analyses the provisions, which have been slowly but steadily implemented by the European Union (EU) in order to unify the legal rules of public revenue (particularly taxes) in all Member States. As main conclusions of this essay we can mention the following: 1) Regarding the application of taxes, the Fiscal Union has been implemented in a low degree. There is only in force a Directive on cross-border cooperation within the EU for the recovery of tax claims. 2) With regard to direct taxation there is a conflict between the reluctance of member States to give up their exclusive taxing powers and the efforts of EU institutions (particularly the Commission and the ECJ) to remove or reduce differences of treatment between residents and non residents. 3) The situation is totally different with respect to indirect taxation. The foundations for a common indirect taxation were set up in early times, back in 1967. However we must distin- guish several action fields. On the one hand we have harmonized taxes (VAT and Excise Duties). On this field the unification is weaker because it has been carried out through Directives (which implement a general legal framework and leave a big action margin to the Member States). On the other hand we have custom taxes wich is the field in which we can speak of total fiscal union in strict sense. Indeed, import duties are the same in the whole European Union and are ruled by Regulations, which unlike Directives, are directly applicable. 4) Where no Fiscal Union exists at all is in administrative and judicial procedures which exist to solve controversies related with the application of taxes. Every Member State has its own procedures and it is not possible to find common elements or rules.