harmonization of VAT

Harmonization of VAT (Value-Added Tax) refers to aligning the rules and tax rates across different countries within a region, such as the European Union. Its goal is to make the tax system more consistent, reducing complications for businesses operating in multiple countries. This process ensures that VAT regulations, rates, and procedures are more similar, facilitating easier trade, preventing tax evasion, and promoting economic integration. Essentially, harmonization creates a more predictable and uniform framework for VAT, benefiting both governments and businesses by simplifying cross-border transactions.