Advanced Search
MyIDEAS: Login to save this article or follow this journal

The reduced VAT rate for small business in Croatia

Contents:

Author Info

  • Helena Blazic

    ()
    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

  • Mira Dimitric

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

Registered author(s):

    Abstract

    This paper assesses the potential effects of introduction of the reduced VAT rate for small business, based on the EU VAT legislation development. The analysis includes effects on prices, sales, shadow economy and employment. It starts with the assumption of no substantial effect. Survey for Croatia is done by small business owners’ interviews and encompasses descriptive and inferential statistics based on parametric tests. The EU expected existence of a link between VAT reduction, price reduction, sales increase and positive effects on employment (as well as decline in the shadow economy) is proved even in this research. However, the pass-through to prices is very moderate as well as other effects. The reduced VAT rate could have some positive results for the restaurants and bars only. There exists also some possibility for construction of housing and construction services related to housing as well as some other labour intensive services.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: https://www.efri.uniri.hr/sites/efri.hr/files/cr-collections/2/blazic-2009-1.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by University of Rijeka, Faculty of Economics in its journal Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics.

    Volume (Year): 27 (2009)
    Issue (Month): 1 ()
    Pages: 83-114

    as in new window
    Handle: RePEc:rfe:zbefri:v:27:y:2009:i:1:p:83-114

    Contact details of provider:
    Postal: p.p. 113, 51000 RIJEKA, Ivana Filipovica 4
    Phone: 0038551355111
    Fax: 0038551212268
    Email:
    Web page: https://www.efri.uniri.hr/en/proceedings
    More information through EDIRC

    Related research

    Keywords: public finance; small business; reduced VAT rates; efficiency; Croatia;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Paul Baker & Vanessa Brechling, 1992. "The impact of excise duty changes on retail prices in the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 13(2), pages 48-65, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rfe:zbefri:v:27:y:2009:i:1:p:83-114. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antica Sergovic).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.