European Union tax harmonisation and turkish taxation system harmony

The European Union is the largest community, which has a long historic past, drags dynamics that belong to various communities, experiences quite complex problems all in one while it performs the aim of economic integration. The aim of this constitution which started with six countries and now includes twenty seven countries is to make the political and economic integration possible. The issue of the hamonisation of taxation system applied in the member countries of European Union constitutes a must for this integration. Therefore it is very important to prevent unfair competition which can occur among member countries. In this context, it is necessary that in general application which member countries put into practice related to their taxation system not be different. From our researches done by utilizing domestic and foreign works which were composed of source research based on the internet and library , we have concluded that there is no difference between the tax practices of member countries , but when we get further details, several differences come into existence. The reason for this is that member countries do not want to lose their national sovereignty. On this account the harmonisation studies among the member countries of the Union, especially in the indirect taxation, operate slowly. To Turkey, which applied to European Union for full membership , tax practices bear importance for unfair competition that member countries can face toward Turkey. Therefore, as a result of the studies done especially on indirect taxes, Turkish Tax System has been harmonized with the European legislation in part. But it has not been made noteworthy progress in respect of direct taxes. Key words: The European Union, Tax Harmonisation, Turkish Tax System, Tax.