Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(2), 487-498 | DOI: 10.11118/actaun201563020487

Developments of VAT Rates in EU Countries in the Context of Harmonization and Fiscal Consolidation

Alena Andrejovská, Lucia Mihóková
Department of Finance, Faculty of Economics, Technical University of Košice, Němcovej 32, 040 01 Košice, Slovak Republic

Although the value added tax is most often used tax it is a relatively young tax instrument that can assure significant increase in countries tax revenues. The advantage of VAT is that it is a consumption tax and so the tax payers take it as a natural part of the price. To assure the transparency and flexibility of relationships between EU countries, EC stresses the need of harmonizing Member States' approaches to VAT rates and tax bases. Development of its rates refers to a relative autonomy of the states' policies and at the same time illustrates the changes in the tax harmonization process, which enhances the need for its research. The paper analyzes the development of VAT rates in the EU since their introduction, with the emphasis on the period 2000-2012. Development is evaluated in terms of harmonization and fiscal consolidation in the crisis years. At the same time the implicit rate of value added tax is determined, which serves as a measure of tax collection success to its base.

Keywords: VAT, standard VAT rates, reduced VAT rates, harmonization, fiscal consolidation, implicit tax rates

Prepublished online: May 10, 2015; Published: April 1, 2015  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Andrejovská, A., & Mihóková, L. (2015). Developments of VAT Rates in EU Countries in the Context of Harmonization and Fiscal Consolidation. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(2), 487-498. doi: 10.11118/actaun201563020487
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ANNUAL GROWTH SURVEY. 2011. Summary of the economic analysis and messages. European Commission - MEMO/11/11. [Online]. Accesible at: http://europa.eu/rapid/press-release_MEMO-11-11_en.htm?locale=en. [Accessed: 2014, May 12].
    2. BÁNOCIOVÁ, A. 2009. Analýza dane z pridanej hodnoty v SR. E + M Ekonomie a management, 4/2009: 104 -115.
    3. BLUNDELL, R. 2009. Assessing the Temporary VAT CUT Policy in the UK. Fiscal studies, 30(1): 31-38. DOI: 10.1111/j.1475-5890.2009.00088.x Go to original source...
    4. BORSELLI, F., CHIRI, S., ROMAGNANO, E. 2012. Patterns of Reduced VAT Rates in the European Union. International VAT monitor January/February 2012: 13-21. IBFD. [Online]. Accesible at: https://goo.gl/X1YDjv. [Accessed: 2014, January 28].
    5. BUŠOVSKÁ, M. 2012. Convergence of VAT Rates within the EU Integration. In: Teoretické a praktické aspekty veřejných financí. VŠE, April. Praha: Fakulta financí a účetnictví, Nakladatelství Oeconomica.
    6. ERNST & YOUNG. 2013. Indirect Tax in 2013: A review of global indirect tax developments and issus. EYGM Limited. [Online]. Accesible at: http://www.ey.com/Publication/vwLUAssets/Global_indirect_tax_developments-the_shift_in_2013/$FILE/Indirect_tax_2013.pdf. [Accessed: 2014, January 28].
    7. EUR-LEX. ©2014. Access to European Union law. Directive 67/227/EEC. [Online]. Available at: http://eur-lex.europa.eu/cs/index.htm. [Accessed: 2014, May 10].
    8. EUR-LEX. ©2014. Access to European Union law. Directive 67/228/EEC. [Online]. Available at: http://eur-lex.europa.eu/cs/index.htm. [Accessed: 2014, May 10].
    9. EUR-LEX. ©2014. Access to European Union law. Directive 92/77/EEC. [Online]. Available at: http://eur-lex.europa.eu/cs/index.htm. [Accessed: 2014, May 10].
    10. EUR-LEX. ©2014. Access to European Union law. Directive 77/388/EEC. [Online]. Available at: http://eur-lex.europa.eu/cs/index.htm. [Accessed: 2014, May 10].
    11. EUROPEAN COMMISION. 2014. Taxation and Customs Union - Taxation - VAT - How VAT Works: General Overview. [Online]. Accesible at: http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm. [Accessed: 2014, May 10].
    12. EUROPEAN COMMISSION. 2011. Taxation trends in the European Union. Focus on the crisis: The main impacts on EU tax system. Luxembourg: Publications Office of the European Union, Directorate-General for Taxation and Customs Union and Eurostat. [Online]. Accesible at: http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-EU-11-001/EN/KS-EU-11-001-EN.PDF. [Accessed: 2014, April 28].
    13. EUROPEAN COMMISION. 2013. Spring forecast 2013 - The EU economy: adjustment continues. Luxembourg. [Online]. Accesible at: http://ec.europa.eu/economy_finance/eu/forecasts/2013_spring_forecast_en.htm. [Accessed: 2014, January 28].
    14. EUROPEAN COMMISION. 2013. Study to quantify and analyse the VAT Gap in the EU-27 Member States. Luxembourg. [Online]. Accesible at: https://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/vat-gap.pdf. [Accessed: 2014, January 28].
    15. EUROPEAN COMMISION. 2014. VAT Rates Applied in the Member States of the European Union. 2014. Luxembourg. [Online]. Accesible at: https://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf. [Accessed: 2014, January 28].
    16. EURÓPSKY PARLAMENT. 2011. Pozmeňujúce a doplňujúce návrhy k budúcnosti DPH. AM\874380SK.doc. [Online]. Accesible at: http://www.europarl.europa.eu/meetdocs/2009_2014/documents/imco/am/874/874380/874380sk.pdf. [Accessed: 2014, January 26].
    17. EUROSTAT STATISTICS. [Online database]. Accesible at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database.
    18. GÁBIK, R. 2011. Slovensko by malo zvýšiť podiel "dobrých" daní. Komentár 2011/24. IFP MF SR. [Online]. Accesible at: p://www.finance.gov.sk/Default.aspx?CatID=8000. [Accessed: 2014, April 14].
    19. GRÚŇ, Ľ. 2001. Dane včera, dnes a zajtra. Bratislava: Eurounion.
    20. CHARLET, A. and OWENS, J. 2010. An International Perspective on VAT. Tax notes International, 59(12): 943-954. TaxAnalysts. [Online]. Accessible at: http://www.oecd.org/tax/consumption/46073502.pdf. [Accessed: 2014, April 11].
    21. INFORMAČNÉ LISTY O EURÓPSKEJ ÚNII. 2014. Nepriame dane - Daň z pridanej hodnoty. [Online]. Accesible at: http://www.europarl.europa.eu/ftu/pdf/sk/FTU_5.11.4.pdf. [Accessed: 2014, January 28].
    22. INSTITUTE FOR FISCAL STUDIES. 2011. A retrospective evaluation of elements of the EU VAT system. Final report TAXUD/2010/DE/328. FWC No. TAXUD/2010/CC/104. European Commission, TAXUD. [Online]. Accesible at: http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/report_evaluation_vat.pdf. [Accessed: 2014, April 28].
    23. KEEN, M. 2008. VAT, Tariffs, and Withholding: Border Taxes and Informality in Developing Countries. Journal of Public Economics, 92(10/11): 1892-1906. IMF Working Paper. [Online]. Accesible at: https://www.imf.org/external/pubs/ft/wp/2007/wp07174.pdf. [Accessed: 2014, May 08]. DOI: 10.1016/j.jpubeco.2008.05.006 Go to original source...
    24. KEEN, M., LOCKWOOD, B. 2006. Is the VAT a Money Machine? National Tax Journal, 59(4): 905-928. DOI: 10.17310/ntj.2006.4.09 Go to original source...
    25. LINDHOLM, R. W. 1980. The origin of the value added tax. Journal of CorporationTax Law, 1: 11-13.
    26. MATHIS, A. 2004. VAT Indicators. European Commission Taxation Papers, Working Paper No. 2. [Online]. Available at: http://ec.europa.eu/taxation_custom. [Accessed: 2014, April 12].
    27. NERUDOVÁ, D. 2008. Harmonizace daňových systémů zemí Evropské unie. 2nd Edition. Praha: ASPI.
    28. OECD STATISTICAL DATABASE (OECD. StatExtracts). ©2014. [Online database]. Available at: http://stats.oecd.org/.
    29. OWENS, J. 2011. Improving performance of VAT systems is a priority in the context of the economic crisis. World Commerce Review, 5(3): 8-10. OECD. [Online]. Accesible at: https://www.oecd.org/ctp/consumption/48826272.pdf. [Accessed: 2014, January 28].
    30. OWENS, J., BATHIAU, P. 2011. VAT's next half century: Towards a single-rate system? OECD. Observes, 284 (q1). [Online]. Available at: http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=175f03d2609e43d5bc2c8d18c0f1dd54%40sessionmgr10&vid=2&hid=18. [Accessed: 2014, May 8].
    31. RAISOVÁ, M., BULECA, J., MICHALSKI, G. 2014. Food processing firms inventory levels in hard times. 2004-1012 Slovak, Czech and Polish enterprises case. In: Procedia Economics and Finance, Enterprise and the Competitive Environment. 6-7 March, Brno, Czech Republic, 12, 2014, pp. 557-564. Go to original source...
    32. SIEMENS, Von W. 1919. Veredelte Umsatzsteuer, Siemensstadt.
    33. SOUKOPOVÁ, J., ŠINKYŘÍKOVÁ, T. 2014. Standard or Implicit VAT Rate? In: ŠPALKOVÁ, D., MATĚJOVÁ, L., Proceedings of the 18th International Conference Current Trends in Public Sector Research. Brno: Masaryk University, 90-98.
    34. ŠINKYŘÍKOVÁ, T., SOUKOPOVÁ, J. 2012. Impact of standard rate of Vat on Tax mix in EU 27. Acta Univ. Agric. Silvic. Mendelianae Brun., LX(7): 369-378. [Online]. Available at: http://http://www.mendelu.cz/dok_server/slozka.pl?id=57208;download=105008. [Accessed: 2014, May 8]. DOI: 10.11118/actaun201260070369 Go to original source...
    35. ŠIROKÝ, J. 2012. Daně v Evropské unii. 5. vydání. Praha: Linde.
    36. ŠIROKÝ, J., KOVÁŘOVÁ, A. 2011. Changes in VAT rates during the economic crisis. Acta Univ. Agric. Silvic. Mendelianae Brun., LIX(2): 339-246. DOI: 10.11118/actaun201159020339 Go to original source...
    37. ŠIROKÝ, J., KOVÁŘOVÁ, A. 2010. The Causes of Changes in the Rates of Value Added Tax in the Czech Republic and their Possible Impacts. ACTA VŠFS: Economic Studies and Analyses. 2/2010(4): 126-139. [Online]. Available at: https://is.vsfs.cz/repo/3090/2.clanek.pdf. [Accessed: 2014, May 10].
    38. TAXATION AND CUSTOMS UNION. 2013. Taxation Trends in European Union 2013. Statistical books. Eurostat: EuropeanCommission: European Union. Accesible at: www.ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_structures/2013/report.pdf. [Accessed: 2014, April 28].

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content