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Theoretical Considerations on VAT Structure Rates in the European Union

Author

Listed:
  • Ionela BUTU

    (University of Economic Studies, Bucharest, Romania)

  • Petre BREZEANU

    (University of Economic Studies, Bucharest, Romania)

  • Adriana PORUMBOIU

    (University of Economic Studies, Bucharest, Romania)

  • RalucaAndreea GHEÈšU

    (University of Economic Studies, Bucharest, Romania)

Abstract

According to the well-known statement of the American scientist Benjamin Franklin, the Polymath, in a letter to Jean-Baptiste Leroy in 1789: “Nothing is certain in this world, excepting death and taxes†. This article provides an overview of theoretical concepts existing in the specialized literature regarding VAT rates. The present paper summarizes the current VAT rates applied by member states in EU and the definition of the concept. Generally speaking, the VAT systems in place across the European Union are still quite heterogeneous, despite the common legal framework and guidelines in place. In addition to the reduced rates, some Member States also have super-reduced rates, parking rates and zero rates. Also, I highlight the evolution of the VAT Revenue in 2017-2018. Besides these, I underlined the image of the emergent states regarding the percentage in GDP of the indirect, direct and social contributions and VAT average rate, in comparison with the developed countries.

Suggested Citation

  • Ionela BUTU & Petre BREZEANU & Adriana PORUMBOIU & RalucaAndreea GHEÈšU, 2019. "Theoretical Considerations on VAT Structure Rates in the European Union," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(21), pages 54-62, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2019:i:21:p:54-62
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    File URL: http://www.financejournal.ro/fisiere/revista/173239998006.%20Butu_Brezeanu_Porumboiu_Ghetu%20EN.docx.pdf
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    References listed on IDEAS

    as
    1. Marius Cristian Milos & Laura Raisa Milos, 2014. "Indirect Taxation Trends In The European Union Member States," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 96-103, December.
    2. Copenhagen Economics, 2007. "Study on reduced VAT applied to goods and services in the Member States of the EU," Taxation Studies 0018, Directorate General Taxation and Customs Union, European Commission.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Raluca Andreea GHEÈšU & Petre BREZEANU, 2020. "Comparative Analysis of Some Member States of the European Union in Central and Eastern Europe Regarding the Evolution of the Fiscal Pressure on Taxes," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(22), pages 34-43, November.
    2. Adriana Elena PORUMBOIU & Petre BREZEANU, 2020. "The Lawsuits Romania Loses at European Court of Human Rights - Judicial Vulnerability, Fiscal Consequences," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(22), pages 51-57, November.
    3. Tatiana PĂUN (ZAMFIROIU) & Corina SCARLAT, 2021. "Romania’s Journey of Integration into the European Monetary Union: a Quantitative Analysis," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(23), pages 82-94, November.
    4. Ionela BUTU & Petre BREZEANU & Adriana PORUMBOIU & Sorina Emanuela ȘTEFONI, 2021. "The Relationship Between Vat Gap And Economic Or Institutional Variables," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 250-259, December.
    5. Ionela BUTU & Petre BREZEANU, 2020. "Fighting VAT Fraud through Administrative Tools in the European Union," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(22), pages 90-101, November.

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    More about this item

    Keywords

    : Indirect taxes; direct taxes; VAT standard rate; VAT reduced rates; VAT super-reduced rate; parking rate; VAT revenue.;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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