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Collection Dilemmas and Performance Measures of the Value-Added Tax in Germany and Poland

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  • Hybka Małgorzata Magdalena

    (Department of Public Finance, Faculty of Economics, Poznań University of Economics and Business, Poznań, Poland)

Abstract

In the European Union Member States, value-added tax (VAT) is undergoing a continuous process of harmonization, which was initiated in the 1960s by the introduction of the First and Second Council Directives and which resulted in the implementation of the common tax assessment base. Currently, the European Union VAT system faces multiple challenges related in particular to the negative side effects of certain design features and progressing globalization. The main aim of this article is to discuss some dilemmas of the common VAT model. Particular attention is placed on the fiscal consequences of VAT preferences, as well as on the origins, components, and implications of the VAT gap. For the purpose of this analysis, 2 neighboring countries were selected, namely, Germany and Poland. On the basis of the national and Eurostat data, the author calculates the most significant VAT performance indicators and reviews the factors decreasing VAT efficiency in these countries in comparison to other European Union Member States.

Suggested Citation

  • Hybka Małgorzata Magdalena, 2018. "Collection Dilemmas and Performance Measures of the Value-Added Tax in Germany and Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(2), pages 110-121, June.
    • Handle: RePEc:vrs:ijomae:v:54:y:2018:i:2:p:110-121:n:1
    DOI: 10.2478/ijme-2018-0009
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    References listed on IDEAS

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    2. Keen, Michael & Lockwood, Ben, 2006. "Is the VAT a Money Machine?," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 905-928, December.
    3. Malgorzata Magdalena Hybka, 2016. "Allocating Tax Revenue To Sub-Central Government Levels: Lessons From Germany And Poland," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(4), pages 689-709, December.
    4. Burton,Mark & Sadiq,Kerrie, 2013. "Tax Expenditure Management," Cambridge Books, Cambridge University Press, number 9781107007369.
    5. Leon Bettendorf & Sijbren Cnossen, 2014. "The Long Arm of the European VAT, Exemplified by the Dutch Experience," CESifo Working Paper Series 4730, CESifo.
    6. Keen, Michael & Smith, Stephen, 2006. "VAT Fraud and Evasion: What Do We Know and What Can Be Done?," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 861-887, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    value-added tax; collection performance; tax gap; tax expenditures; tax fraud; Germany; Poland;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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