This Book deals with analyses of the key fiscal system features and different factors which stand on the basis of tax system development. Dealing with the fiscal policy weshould consider the effect and consequences tax types and rates may have, in particular the Value Added Tax. Proper fiscal policies enable faster development of a country, regarding the situation and economic power each country has, especially the Republic of Kosovo.If we compare tax systems of different countries, there are no two countries where the tax is realized in the same way. This is because the tax system derives from interaction of different factors. The revenues make the main financing part of the Kosovo Budget, where the Value Added Tax is a contributor too.Just for this, the tax system over time has undergone the changes, by adapting the EU regulations, but maintaining the specificities of our country (the Republic of Kosovo). The Value Added Tax is implemented in all European Union countries, in some countries of Asia and Latin America. But it is mostly related to the EU, where not only mandatory but it is mainly harmonized among these countries on the basis of the Directive Six of this Union.