European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). It is a harmonized tax in the European Union, so that the legislation of all Member States must adapt their regulations to the European "Directive (European Union Law)") and the rest of the Community development regulations. The Sixth Directive, of May 17, 1977, constitutes the fundamental norm in this matter, through which uniform coverage for the purposes of this tax in the European Community was established.[1] The EU institutions do not collect the tax, but each Member State of the European Union is obliged to adopt a value added tax that complies with the intra-community VAT code. A part of the VAT collected by Member States is used to finance the annual budget of the European Union, as part of the "own resources" system.

The most important reform of the regulations regarding value added tax occurred in 1993, with the entry into force of the so-called internal market within the European Union, which entailed the free circulation of goods, services and people, consequently the suppression of tax controls at the border, declaring the exemption of so-called intra-community deliveries and the settlement of the tax at destination.[1]​.