<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

Department of Public Finance, Faculty of Economics

Poznań University of Economics and Business

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Article Category: Research Article

Published Online: Jun 29, 2018

Page range: 110 - 121

Received: Sep 25, 2017

Accepted: Apr 17, 2018

DOI: https://doi.org/10.2478/ijme-2018-0009

Keywords
value-added tax, collection performance, tax gap, tax expenditures, tax fraud, Germany, Poland

© 2018 Małgorzata Magdalena Hybka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Article Category: Research Article

Published Online: Jun 29, 2018

Page range: 110 - 121

Received: Sep 25, 2017

Accepted: Apr 17, 2018

DOI: https://doi.org/10.2478/ijme-2018-0009

Keywordsvalue-added tax, collection performance, tax gap, tax expenditures, tax fraud, Germany, Poland

© 2018 Małgorzata Magdalena Hybka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
value-added tax, collection performance, tax gap, tax expenditures, tax fraud, Germany, Poland