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Goods and services tax in the tax systems of selected countries of the European Union: a case study

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Listed:
  • Jolanta Maria Ciak

    (WSB University in Torun)

  • Agnieszka Gruszczynska

    (WSB University in Torun)

Abstract

Motivation: In the face of globalisation and free exchange of goods in the European Union, information regarding the mechanism of the functioning of one of the basic sales taxes requires constant update. Therefore, it is necessary to have knowledge of using VAT in the Polish tax system with respect to solutions implemented and used in the neighbouring countries. Although the European Union aims at harmonisation of tax systems functioning in its countries, differences can still be observed not only in the scales and tax rates. Aim: The aim of the article is to compare goods and services tax functioning in Poland with selected EU member countries in the years 2007–2017. Particular emphasis is put on regulations concerning tax functioning as well as current rates in selected European Union countries i.e.: Germany and Great Britain, and Poland and Lithuania, also the role of the tax in the budget revenue system is presented. Results: Countries with stabilised economies (Great Britain and Germany) are characterised by less dynamic changes of tax rates, of the tax revenue structure or of tax revenue amount in relations to GDP. They are also characterised by a significant increase in revenue due to goods and services tax, but by a simultaneous smaller contribution in total tax revenue. Countries with developing economies in contrast (Poland and Lithuania) are characterised by significant dynamics, which was particularly visible during the world economic crisis. The contribution of goods and services tax in the tax revenue structure is higher, as are this tax rates.

Suggested Citation

  • Jolanta Maria Ciak & Agnieszka Gruszczynska, 2019. "Goods and services tax in the tax systems of selected countries of the European Union: a case study," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 269-282, September.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:3:p:269-282
    DOI: 10.12775/EiP.2019.019
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    References listed on IDEAS

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    1. James,Kathryn, 2015. "The Rise of the Value-Added Tax," Cambridge Books, Cambridge University Press, number 9781107044128, May.
    2. Keen, Michael & Lockwood, Ben, 2010. "The value added tax: Its causes and consequences," Journal of Development Economics, Elsevier, vol. 92(2), pages 138-151, July.
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    4. Richard Bird & Pierre-Pascal Gendron, 2006. "Is VAT the Best Way to Impose a General Consumption Tax in Developing Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0618, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Gemmell, Norman & Hasseldine, John, 2012. "The Tax Gap: A Methodological Review," Working Paper Series 2435, Victoria University of Wellington, Chair in Public Finance.
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    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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