Acta Univ. Agric. Silvic. Mendelianae Brun. 2014, 62, 1465-1474
Published online 2015-01-17

Reflection of the Change in VAT Rates on Selected Household Expenditures in the Czech Republic and the Slovak Republic (2007–2013)

Jan Široký1, Regína Střílková1, Anna Bánociová2, Veronika Zlaczká2

1Department of Accounting, Faculty of Economics, VŠB – Technical University of Ostrava, 17. listopadu 15/2172, 708 33 Ostrava, Czech Republic
2Department of Finance, Faculty of Economics, Technical University of Košice, Nemcovej 32, 040 01 Košice, Slovak Republic

Member States of the European Union in the period of years 2007–2013 increased the rate of value added tax several times in an attempt to consolidate public budgets. While the Czech Republic is a typical representative of country changing VAT rates several times, Slovakia made practically only one change in the VAT rate. On the other hand, the Slovak Republic is a country where the reduced rate is applied only to the minimum of commodities. Changes in VAT are naturally reflected in household expenditures which are analyzed by the consumer basket, whose composition is also a subject of changes. Another factor that has an impact on household spending is swapping commodities between the rates of VAT.
The aim of this paper is, based on the analytic-synthetic methods, to determine how are these changes differently manifested in the Czech Republic and the Slovak Republic in reference to the share of commodity consumption included in the standard and reduced VAT rates and to the exempt transactions, and, in particular, to determine how they affected the VAT burden of the hypothetical household in both countries.


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