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Croatia – Taxation
Candidate countries conduct negotiations with the European Union (EU) in order to prepare themselves for accession. The accession negotiations cover the adoption and implementation of European legislation (acquis) and, more specifically, the priorities identified jointly by the Commission and the candidate countries in the analytical assessment (or ‘screening’) of the EU’s political and legislative acquis. Each year, the Commission reviews the progress made by candidates and evaluates the efforts required before their accession. This monitoring is the subject of annual reports presented to the Council and the European Parliament.
Commission Report [COM(2010) 660 final – SEC(2010) 1326 - Not published in the Official Journal].
The 2010 Report presents the progress made in implementing taxation rules. However, gaps remain in the area of fiscal control and the fight against fraud.
EUROPEAN UNION ACQUIS (according to the Commission’s words)
The acquis on taxation covers extensively the area of indirect taxation, namely value-added tax (VAT) and excise duties. It lays down the scope, definitions and principles of VAT. Excise duties on tobacco products, alcoholic beverages and energy products are also subject to EU legislation. As concerns direct taxation, the acquis covers some aspects of taxing income from savings of individuals and of corporate taxes. Furthermore, Member States are committed to complying with the principles of the Code of Conduct for Business Taxation, aimed at the elimination of harmful tax measures. Administrative co-operation and mutual assistance between Member States is aimed at ensuring a smooth functioning of the internal market as concerns taxation and provides tools to prevent intra-Community tax evasion and tax avoidance. Member States must ensure that the necessary implementing and enforcement capacities, including links to the relevant EU computerised taxation systems, are in place.
EVALUATION (according to the Commission’s words)
No progress was made in harmonising direct and indirect taxation legislation with the acquis. Progress can be reported in the area of operational capacity for the tax administration (taxpayers’ services and audit efficiency).
- Website of the Directorate General for Enlargement, Enlargement Strategy and Progress Reports 2010