The Degree Of Compliance Based On Vat In Romania Between 1995 And 2015

The fiscal policy is an instrument that collects resources for the state budget. necessary to perform state functions; stabilize the economy; regulation of the economy and recovery growth. The most important instruments are taxes and taxpayers. The taxpayer is obliged by law to transfer to the state budget some of the value it creates ago performing an activity. Although there are usually many similar elements in understanding the concept of "taxpayer" globally each tax authority establish criteria according to which a citizen falls into the category of taxpayers. Analyzing the case of Romania and the evolution of VAT conformity we created some regressions that illustrate the VAT correlation in Romania between 1995 and 2015. Thus, we built three unifactorial regression models showing how VAT impacts economic indicators such as GDP, power purchase expressed through the net annual average salary, and household final consumption expenditure. Moreover, each model has been tested and verified using statistic tests to give reliable results. In a first stage, we analyzed the correlation between GDP as endogen variable and VAT, then we created another model that we kept VAT as an independent variable, but we changed the dependent variable using the consumption and in the last phase we tried to see how the purchasing power explains the variation of this indirect tax. Because according to the used tests we demonstrated that correlation coefficients are significant, we proceeded to explain them starting from fiscal and economic reality, own of these analyzed 20 years.