Removal of Taxation Barriers to Trade

Abstract

Art 26 TFEU affirms the EU’s commitment to the operation of the internal market, namely an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. From its initiation the EU envisaged the abolition of internal customs duties and charges of equivalent effect. While necessary limits upon the power to impose internal taxation were also accepted, Member States were left with a considerable discretion in fiscal matters. The scope of that discretion is being gradually reduced through the harmonization of indirect taxes and certain direct business taxes.