THE IMPACT OF THE TAX HARMONIZATION PROCESS (ON THE EXAMPLE OF VAT) ON BUDGET REVENUES IN 25 SELECTED EU COUNTRIES – A COMPARATIVE ANALYSIS

Authors

Keywords
harmonization, tax, tax rates, budget, EU

Abstract
As a result of the progressive integration of European countries, a need has emerged to integrate tax law provisions, especially in the field of indirect taxes. Over the years, it has been possible to introduce several changes aimed at, among other things, equalizing the level of tax rates as well as reducing the tax gap through preventive measures taken at the European level.

This paper aims to assess the impact of the VAT harmonization process on the level of budget revenues on the example of 25 selected EU countries that have been members of the community since 2004 (Poland, Estonia, the Czech Republic and Hungary). The impact of changes in VAT rates and the dynamics of revenues on the budgets of individual countries due to value-added tax is analyzed in particular.

The article is based on a comparative analysis of financial data posted on the official EU website, available literature on the subject, scientific articles and internet resources, with the particular use of national normative acts and EU legal regulations. In addition, a statistical research method is used, and the results, presented in tables and graphs, are then subjected to interpretation.

The results of the research carried out:

1) The need for tax harmonization is the result of the progressive integration of countries within the structure of the European Union. One primary aspect, which has not been achieved yet, is the harmonization of VAT rates applied in individual countries.

2) Another issue that requires additional harmonization regulations is the applicable registration thresholds, beyond which the obligation to register an active VAT payer arises.

3) Considerable success achieved in the process of VAT harmonization is the reduction of the gap size in each of the surveyed Member States over the years after the accession to the EU.

JEL: G17, G18.
Pages: 15

To view the full text of the article click on the relevant button below.

More titles

  • FACTORS INFLUENCING RESTAURANT SELECTION IN THE COVID-19 ERA: A STUDY OF CONSUMER PREFERENCES IN INDIA

    COVID-19 struck the humanity at the end of 2019 and since then it has been ravaging the mankind. Since then the economies have been badly affected; businesses have shut down and the restaurant businesses are no exception to it. Now, when the vaccination programs are being carried out by the governments all around the world, including India, and ...

  • THE ROLE OF CORPORATE TAX, EARNINGS AND DEBT IN DETERMINING DIVIDEND POLICY OF FIRMS

    Dividend policy is a critical component of corporate finance strategy, which, when properly implemented, will allow firms to grow. In general, equity holders or corporate fund providers expect a favourable dividend policy as a motivation and reward for their investment in a company. Despite this golden expectation, there are still certain factors ...

  • INNOVATIVE MARKETING TECHNOLOGIES IN THE DEVELOPMENT OF THE TOURISM SPECIALIZED TYPES

    New tools and innovative marketing technologies are emerging in the process of globalization and digitalization of society. The aim of this paper is to review and evaluate the prospects of Internet technologies as tools for analyzing consumers of the tourism market and segmentation of destinations according to specialized types of tourism. The ...