Standard or Implicit VAT rate?
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 18th International Conference Current Trends in Public Sector Research |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | Daň z přidané hodnoty; základní sazba; implicitní sazba; daňové příjmy |
| Description | The paper deals with the standard and implicit VAT rates. The VAT is a key tax collection resource, representing an average of 7.7% of GDP. Standard VAT rates may not provide a simple key to defining VAT collection (as % of GDP). The implicit VAT rate, rather than the standard VAT rate, is relevant for defining VAT collection. This paper focuses on whether the VAT rates correlate with the VAT share of GDP revenue, and compares standard and implicit VAT rates to determine which has a stronger correlation to the VAT share of GDP. The aim is to show which rate of VAT (standard or implicit) is better for comparing and gives more complex information for decision. We analysed the data of European Union and the ten-year period from the beginning of 2002 to the end of 2011. The results of the analysis did not provide a clear answer, especially as regards the standard VAT rate. It is not possible to say that there is any definite causality between the standard VAT rate and tax revenues. In contrast, causality was confirmed with the implicit VAT rate. |