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VAT Collection Methods

Author

Listed:
  • Hana Zídková

    (Department of Public Finance, University of Economics, W. Churchill sq. 4, 130 67 Prague 3, Czech Republic)

  • Aneta Šťastná

    (Department of Public Finance, University of Economics, W. Churchill sq. 4, 130 67 Prague 3, Czech Republic)

Abstract

Although, the VAT contributes significantly to tax revenues in all EU Member States, the current VAT system is vulnerable to organized fraud schemes and suffers from large scale tax evasion. The EU Member States and the European Commission are discussing new ways of VAT collection to prevent the evasive and fraudulent practices. This paper aims at the description of different VAT collection methods including their flaws and benefits that are addressed in the available literature. The conclusion is that reverse charge and split payment method are changing the character of the VAT system. The One stop shop system is lacking trust of the EU member states. Therefore, the recommendation is to improve current system by electronic means of reporting.

Suggested Citation

  • Hana Zídková & Aneta Šťastná, 2019. "VAT Collection Methods," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(3), pages 883-895.
    • Handle: RePEc:mup:actaun:actaun_2019067030883
    DOI: 10.11118/actaun201967030883
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    References listed on IDEAS

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    1. Sijbren Cnossen, 2010. "Three VAT Studies," CPB Special Publication 90, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Charles E. Mclure, 1987. "The Value-Added Tax: Key to Deficit Reduction?," Books, American Enterprise Institute, number 725195, September.
    3. Keen, Michael & Smith, Stephen, 2006. "VAT Fraud and Evasion: What Do We Know and What Can Be Done?," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 861-887, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sixia Chen & Yuan Fang & Shengfeng Lu & Haotian Zhang, 2024. "Tackle spurious invoices challenges to VAT compliance: a quasi-experiment of input VAT deduction reform in China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(5), pages 1342-1387, October.

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