The topic of this paper is Financial Transaction Tax on the territory of the European Union. The emergence of financial crisis in 2007. - 2008. marked the beginning of discussions about the role of tax policies played in its development, but also to what extent can tax policies be used as a tool of prevention of emergence of new crisis. At the level of European Union , a potential solution was found in the form of a proposal by European Commission on the introduction of tax on financial transactions. In the first chapter, the author will explain the reasons and goals of taxation of financial sector, what where the consequences of financial crisis 2007 - 2008 regarding Financial Transaction Tax, what are the concepts of direct and indirect taxes, their forms at the EU level and the level of Croatia. The chapter will be concluded with the processing of general features of the Financial Transaction Tax. Second chapter begins with a brief historical overview of the idea of introducing tax on financial transactions, then it analyses legislative proposals for the introduction of a tax on financial transactions in the EU, elaborates the basic elements of the tax on financial transactions, explains the relationship between the tax on financial transactions and the primary law of the European Union, highlights the advantages and disadvantages of the introduction of tax on financial transactions, and ends with the case United Kingdom v. Council, C-209/13. The third chapter compares the forms of Financial Transaction Tax introduced by EU member states.