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International VAT Rate cuts to Support Entrepreneurship within Coronavirus Pandemic Context

Author

Listed:
  • Rodica PRIPOAIE

    (Dunărea de Jos University of Galati, Romania)

  • Irina Olimpia SUSANU

    (Dunărea de Jos University of Galati, Romania)

  • Mihai CADINOIU

    (Dunărea de Jos University of Galati, Romania)

Abstract

Given that 2020 was completely different to what we used to know, and also a particularly difficult year due to SARS-Cov-2 pandemic and to the restrictions imposed by all states worldwide in order to address such pandemic by limiting movement freedom or people and by enacting quarantine measures in many countries, most businesses and companies, irrespective of their field of activity, had losses and a decrease of business activities. In order to support entrepreneurship in hospitality industry (HoReCa) and in other industries as well, many states enacted certain temporary measures to reduce VAT rates, either for standard tax and reduced tax. Thus, governmental authorities seek to stimulate businesses like HoReCa through VAT reduction, as such businesses were among the most seriously impacted. Moreover, there is an international trending to eliminate or introduce zero-VAT rate for the sale of e-books and other electronic publications

Suggested Citation

  • Rodica PRIPOAIE & Irina Olimpia SUSANU & Mihai CADINOIU, 2020. "International VAT Rate cuts to Support Entrepreneurship within Coronavirus Pandemic Context," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 21(5), pages 730-738, December.
    • Handle: RePEc:rom:rmcimn:v:21:y:2020:i:5:p:730-738
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    References listed on IDEAS

    as
    1. Thomas F. Crossley & Hamish Low & Matthew Wakefield, 2009. "The Economics of a Temporary VAT Cut," Fiscal Studies, Institute for Fiscal Studies, vol. 30(1), pages 3-16, March.
    2. Richard Blundell, 2009. "Assessing the Temporary VAT Cut Policy in the UK," Fiscal Studies, John Wiley & Sons, vol. 30(1), pages 31-38, March.
    3. Nicoleta Cristache & Marian Nãstase & Radu Petrariu & Margareta Florescu, 2019. "Analysis of Congruency Effects of Corporate Responsibility Code Implementation on Corporate Sustainability in Bio-Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 536-536, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    VAT rate; standard rate; reduced rate; entrepreneurship; pandemic.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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