THE EUROPEAN LAW IMPACT ON THE NATIONAL TAX LEGISLATION REGARDING VAT

The contribution of taxes to the formation of state tax revenues varies, as a rule, depending on the level of economic development so that the contribution of the indirect taxes in developed countries is lower than that of the direct taxes and the share of the indirect taxes in the total tax revenues knows differences from country to country. Each state, enjoying tax sovereignty, establishes its national fiscal policy according to the political, economic, social and moral conditions that give local specifics, thus creating differences in the revenue structure from one state to another. Although improperly appointed as a tax, VAT represents also an indirect tax, consisting of tax levy placed on the patrimony and the movement of goods and services. Being considered at present, the only real Community tax, it benefits from a number of particular Community provisions, provisions which even the Romanian legislation and tax system had to rally to.