Question

criterias that can be used for taxing

1. Describe the two standards of EU?

Answer 1

The tax standards of EU have main two components: direct taxation and indirect taxation. The direct taxation is the sole responsibility of member states while the indirect taxation impacts the free movement of products and provides the freedom to services in the single market. For the direct taxation, the EU has established certain harmonised standards for the organisations and personal taxation, and member nations have taken joint measures for preventing the double taxation and tax avoidance. EU for the indirect taxation harmonises and coordinates law on excise duties and value-added tax (VAT). It ensures that internal market competition should not get distorted with the variations in indirect taxation systems and rates giving businesses in one nation an unfair benefit over others.