Abstract
This investigation sheds
light on tax and economic competition implications of community VAT accounting.
The regulation of a transitional regime characterized by the destination
principle results in the so-called "carousel fraud" in the European
Union which causes damage to public funds, distortion of competition between
companies in the same sector and deterioration of international trade. European
tax harmonization mechanisms are proposed to improve tax justice, fair economic
competition in the region and optimal international trade conditions.
