Wettbewerbsverzerrungen und Harmonisierung der Umsatzsteuer im Europäischen Binnenmarkt

The paper discusses the harmonization of value added tax rates in the European Community1s internal market from a legal and from an economic viewpoint. There is a fundamental trade-off between the goal of avoiding tax-induced distortions in EC commodity trade and the aim to maintain national sovereignty in the setting of the dornestic value added tax rate. The legal view presented here gives priority to the goal of avoiding trade distortions and consequently argues in favor of a complete equalization of national tax rates prior to 01/01/1993. In contrast, the economic argument given emphasizes that both aims are equally important and that member states should be given as much discretion as possible to solve the trade-off for themselves.