1. bookVolume 15 (2021): Issue 1 (June 2021)
Journal Details
License
Format
Journal
eISSN
2668-3989
First Published
30 Sep 2019
Publication timeframe
1 time per year
Languages
English
access type Open Access

VAT Efficiency in Developing Countries of the European Union

Published Online: 27 Feb 2022
Volume & Issue: Volume 15 (2021) - Issue 1 (June 2021)
Page range: 41 - 48
Journal Details
License
Format
Journal
eISSN
2668-3989
First Published
30 Sep 2019
Publication timeframe
1 time per year
Languages
English
Abstract

Value added tax (VAT) is an important source of income for European Union countries. The developing countries of the European Union are encouraged to step up their efforts to comply with European legislation for the purpose of sustainable economic development. Knowing that these states are susceptible to corruption, this paper investigates the relationship between the efficiency of VAT collection, the VAT gap and the level of the corruption index in the developing countries of the European Union.

Keywords

JEL Classification

Arnold, J. (2008). Do tax structures affect aggregate economic growth? Empirical evidence from a panel of OECD countries (OECD Economics Department Working Paper 643). Paris: Organization for Economic Co-operation and Development. Search in Google Scholar

Babich, G., Crivelli, E., & Marinkov, M. (2019). Tax Administration Strength and Tax Efficiency in Emerging Europe: Lessons for Romania. International Economic Journal, 33(4), 741–756. http://doi.org/10.1080/10168737.2019.168928310.1080/10168737.2019.1689283 Search in Google Scholar

Borselli, F. (2011). Organised VAT Fraud: Features, Magnitude, Policy Perspectives. Quest. Econ. Finanza. Bank Italy Econ. Res. Int. Relat. Area, 106.10.2139/ssrn.2023080 Search in Google Scholar

European Commission. (2010). Green Paper. on the Future of VAT Towards a Simpler, More Robust and Efficient VAT System; European Commission: Brussels, Belgium. Search in Google Scholar

Cnossen, S. (2021). The C-inefficiency of the EU-VAT and what can be done about it. Int Tax Public Finance https://doi.org/10.1007/s10797-021-09683-010.1007/s10797-021-09683-0 Search in Google Scholar

Đurović-Todorović, J., Đorđević, M. & Ristić, M. (2019). C Efficiency Ratio As A Measure Of Vat Efficiency In Eu Developing Countries And Serbia. Novi Ekonomist, Vol 13(2), ISSN 1840-2313 (Print) 2566-333X (Online). Search in Google Scholar

Erero, J. L. (2021). Contribution of VAT to economic growth: A dynamic CGE analysis. Journal of Economics & Management, 43, 22-51. https://doi.org/10.22367/jem.2021.43.0210.22367/jem.2021.43.02 Search in Google Scholar

Keen, M. (2013). The Anatomy of the VAT. National Tax Journal, 66(2), 423–446.10.17310/ntj.2013.2.06 Search in Google Scholar

Kowal A, Przekota G. (2021). VAT Efficiency—A Discussion on the VAT System in the European Union. Sustainability. 13(9):4768. https://doi.org/10.3390/su1309476810.3390/su13094768 Search in Google Scholar

Kurauone, O., Kong, Y., Sun, H., Famba, T. and Muzamhindo, S. (2021), “Tax evasion; public and political corruption and international trade: a global perspective”, Journal of Financial Economic Policy,Vol. 13 No. 6, pp. 698-729. https://doi.org/10.1108/JFEP-04-2020-006710.1108/JFEP-04-2020-0067 Search in Google Scholar

Majerova, I. (2016). The Impact of Some Variables on the VAT Gap in the Member States of the European Union Company. Copernican Oeconomy 7(3):339, https://doi.org/10.12775/OeC.2016.02010.12775/OeC.2016.020 Search in Google Scholar

Okumuş, K. (2021). Analysis of VAT gap in the EU. Master Thesis, Prague University of Economics and Business. Search in Google Scholar

Reckon (2009). Study to Quantify and Analyse the VAT Gap in the EU-25 Member States; Reckon: London, UK Search in Google Scholar

Timofte (Coca), C., Mates, D., Coca, D.-A., & Tanasa (Brinzaru), S.-M. (2020). The Relationship between Tax Evasion and Corruption. A Cross-country Examination. In A. Grigorescu & V. Radu (vol. ed.), Lumen Proceedings: Vol. 11. 1st International Conference Global Ethics - Key of Sustainability (GEKoS) (pp. 173-181). Iasi, Romania: LUMEN Publishing House. https://doi.org/10.18662/lumproc/gekos2020/1810.18662/lumproc/gekos2020/18 Search in Google Scholar

Tóth, P.; Cupák, A.; Rizov, M. (2021). Measuring the Efficiency of VAT Reforms: A Demand System Simulation Approach, Oxford Economic Papers, ISSN 1464-3812, Oxford University Press, Oxford, Iss. Advance articles (Article No.:) gpaa052, http://dx.doi.org/10.1093/oep/gpaa05210.1093/oep/gpaa052 Search in Google Scholar

Ueda, J. (2017). The Evolution of Potential VAT Revenues and C-Efficiency in Advanced Economies. IMF Working Paper No. WP/17/158.10.5089/9781484305874.001 Search in Google Scholar

Zídková, H. & Šťastná, A. (2019). VAT Collection Methods. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(3), pages 883-895. https://www.transparency.org.ro/ro/tironews/indicele-de-perceptie-corup%C8%9Biei-201910.11118/actaun201967030883 Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo