European Financial and Accounting Journal 2014, 9(2):79-90 | DOI: 10.18267/j.efaj.121

Convergence of VAT Rates Between 1995 and 2010

Květa Kubátová1, Pavla Holešovská2
1 prof. Ing. Květa Kubátová, CSc. - Professor; University of Economics, Prague, W. Churchill Sq. 4, 13067 Prague 3, Czech Republic, ,
2 Ing. Pavla Holešovská - Ph.D. Student; University of Economics, Prague, W. Churchill Sq. 4, 13067 Prague 3, Czech Republic, .

Consumption taxes have been harmonized in the EU countries since 1993 and a great attention is paid to their convergence in the EU. The EU directives harmonize tax administration, tax bases and set minimal applicable rates. The aim of the article is to find out if VAT systems of the EU countries really converged during the period 1995 and 2010, in consequence of harmonization. The subject of investigation is standard and reduced VAT rates, VAT revenues as a share in GDP and implicit rates of consumption taxes. Investigative methods are analysis of these indexes' development, t-tests and F-tests. There were used data from Eurostat and the European Commission for the statistics. Except for standard VAT rates, there was no decrease of indexes' variability and therefore tax systems did not converge.

Keywords: Convergence of VAT rates, F-test, The European Union, Value added tax, VAT harmonization
JEL classification: H20

Published: June 1, 2014  Show citation

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Kubátová, K., & Holešovská, P. (2014). Convergence of VAT Rates Between 1995 and 2010. European Financial and Accounting Journal, 9(2), 79-90. doi: 10.18267/j.efaj.121
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