scholarly journals ASSESSMENT OF VALUE ADDED TAX REDUCTION POSSIBILITIES FOR SELECTED FOOD GROUPS IN LATVIA

2018 ◽  
Author(s):  
Aleksejs NIPERS ◽  
Irina PILVERE
Keyword(s):  
Central Government ◽  
Value Added ◽  
Tax Revenue ◽  
The European Union ◽  
Food Groups ◽  
Member States ◽  
Eu Member States ◽  
Fresh Vegetables ◽  
Negative Effect ◽  
The Government

Value-added taxes (VAT) are applied in the European Union (EU) Member States in accordance with Directive 2006/112/EC to limit distortions in competition in the common European market. Latvia is one of the five EU Member States where reduced VAT rates are not applied to food products, and the food is taxed at the standard rate of 21%. For this reason, food producer organisations discuss the introduction of a reduced VAT rate for selected fruits, berries, vegetables as well as potato grown in Latvia. The overall aim of the present research is to assess the effect of reduction of the VAT rate from 21 to 5% for selected food groups: fresh fruits, berries, vegetables and potato produced in Latvia. The research estimated a decrease in the price for the mentioned food groups, identified a potential increase in consumption and forecasted the effect of the VAT rate reduction on the amount of tax revenue collected by the central government. The research found that the reduction of the VAT rate from 21 to 5 % would result in a price decrease ranging from 1.9 to 3.5% for fruits, berries, vegetables and potato, the consumption of fresh fruits and berries would increase, on average, in the range of 1.2–2.3%, while the consumption of fresh vegetables would increase, on average, in the range of 1.2–2.1%, yet in a short-term the tax revenue paid to the government would decrease in the range of EUR 3.9–5.7 million. Nevertheless, in a medium-term, a significant positive effect on the producers of fruits, berries, vegetables and potato that operate legally in the agricultural industry could be expected, as the negative effect of the shadow economy decreases.

scholarly journals An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market

2017 ◽  
Vol 13 (2) ◽  
Author(s):  
Maria Berrittella ◽  
Filippo Alessandro Cimino
Keyword(s):  
Computable General Equilibrium ◽  
Emission Trading ◽  
Value Added ◽  
Carbon Market ◽  
Eu Ets ◽  
The European Union ◽  
Value Added Tax ◽  
Member States ◽  
Eu Member States ◽  
The Eu

AbstractThe literature on the European Union Emission Trading System (EU ETS) is by now very rich. Much is known about the efficiency, the effectiveness, and the environmental and distributional impacts of the EU ETS. Less, however, is known about the carousel value-added-tax (VAT) fraud phenomena in the European carbon market. This article evaluates the welfare effects of carousel VAT fraud in the EU ETS using a computable general equilibrium (CGE) analysis. According to our findings, if VAT fraud occurs in the EU ETS, the effects on welfare for the EU Member States are negative, with welfare loss significantly higher than the VAT fraud value. This article also discusses the reverse charge mechanism that EU Member States could adopt to reduce the VAT fraud phenomena in the European carbon market.

scholarly journals Macroeconomic stability and the level of competitiveness in EU member states: a comparative dynamic approach

2020 ◽  
Vol 11 (4) ◽  
pp. 657-688
Author(s):  
Elżbieta Roszko-Wójtowicz ◽  
Maria M. Grzelak
Keyword(s):  
Positive Impact ◽  
Value Added ◽  
Linear Ordering ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Competitiveness Index ◽  
Polish Economy ◽  
The Eu ◽  
Diagnostic Variables

Research background: The choice of the issue of international competitive-ness of economies as the research problem addressed in this paper has been mainly dictated by the changes observed in the nature of the development of EU economies and the need to assess the competitiveness of the Polish economy. It is time to evaluate and learn from the largest enlargement in the history of the EU which took place in May 2004. An assessment of changes in the state of EU economies, including the Polish economy, is in the centre of research interest of many scientists. National competitiveness is the subject of a great deal of research and economic studies. Integration and globalisation processes in the world economy are the main reasons for the popularity of this topic. The efficient use of sources and factors determining the competitiveness of economies, sectors and enterprises is associated with prosperity over the long term. One of the methods based on the observation of selected basic indicators of economic competitiveness is the method of analysis called the macroeconomic stabilisation pentagon. The method illustrates the extent to which the government achieves five macroeconomic objectives. It is very difficult, if not impossible, to meet all these objectives at the same time. The difficulty of meeting all these goals concurrently is due to the fact that they are more or less competitive rather than complementary. The proposed assessment of competitiveness based on the developed model of macroeconomic stabilisation pentagon is a unique approach in terms of discussion of country?s competitiveness. This approach significantly distinguishes the current study in comparison with standard international reports on competitiveness such as the Global Competitiveness Index or the EU Regional Competitiveness Index. Purpose of the article: The main aim of the paper is to assess the competitiveness of EU economies in the years 2005?2018, based on a selected set of diagnostic variables referring to the concept of macroeconomic stabilisation pentagon. The paper also formulates a detailed list of four research hypotheses. Methods: In order to characterise the competitiveness of the European Union economies, including the EU?15 and EU?13 groups, as well as the Visegrad group, six diagnostic variables affecting the economic situation of individual EU countries were analysed. The variables for analysis were chosen so as to reliably describe the competitive position of a given country, at the same time referring in a substantive sense to the concept of macroeconomic stabilisation pentagon. The linear ordering of objects was made using the reference Hellwig method. The selected method enabled the development of competitiveness rankings of EU Member States in the years 2005, 2009, and 2018. Findings & Value added: The comparative analysis of the main macroeconomic indicators conducted in the paper forms the basis for assessing the cur-rent state of the EU economy in relation to other countries. In the paper, the authors depart from the standard elaboration of ?magic pentagon.? Instead, they apply the variables used in the macroeconomic stabilisation pentagon analysis to develop competitiveness rankings of EU Member States. The con-ducted empirical study has confirmed that the 15th anniversary of EU member-ship had a decidedly positive impact on the level of economic development of the EU?13 countries.

scholarly journals THE FLAWS OF THE SYSTEM OF ACCOUNTING FOR THE VALUE-ADDED TAX LIABILITIES AND RECEIVABLES, AND RECOMMENDATIONS FOR OVERCOMING THEM

2018 ◽  
Vol 28 (5) ◽  
pp. 1613-1618
Author(s):  
Nada Petrusheva ◽  
Darko Iliov
Keyword(s):  
European Union ◽  
Value Added ◽  
The European Union ◽  
Consumption Tax ◽  
Value Added Tax ◽  
Member States ◽  
The Difference ◽  
The Republic ◽  
The Government ◽  
Reduced Rate

Value-added tax (VAT) is a consumption tax, meaning that it is a tax on the purchase of a product or a service. It is a form of taxation that focuses on how much an individual consumes opposed to how much that individual contributes to the economy (income tax).Value-added tax is paid by residents of any country in the European Union. Both consumers and businesses are liable to pay VAT when purchasing products or services. When a manufacturer creates a product, it is liable to pay value-added tax on the components purchased in order to create goods. When the product is sold, the tax burden is transferred onto the buyer, who pays the whole VAT amount, from which the manufacturer pays the government the difference between the whole VAT amount and the VAT amount that has already been paid when the components were purchased. Value-added taxation rates are set by the member states individually. The minimum rate of VAT as directed by the European Union is 15%. There is no maximum limit on value-added taxation. Member states are also at liberty to choose certain products and services to be subject to a reduced rate of VAT or to be exempt altogether. The system of accounting for the VAT liabilities and receivables in the Republic of Macedonia has certain issues which are presented in this paper. This paper also presents recommendations that are aimed towards overcoming these issues.

Comparative assessment of structural indicators of Ukraine industry and the European Union

2018 ◽  
Vol 6 (2(13)) ◽  
pp. 135-145
Author(s):  
Svitlana Ishchuk
Keyword(s):  
European Union ◽  
Comparative Analysis ◽  
Value Added ◽  
Industrial Sector ◽  
Comparative Assessment ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Structural Indicators ◽  
The Eu

A comparative analysis of the structural advantages of the industry of Ukraine and the EU member states in terms of the share of industry in: output of the economy, gross value added of the economy, exports of airborne vehicles, as well as the efficiency indicator (the share of airborne emissions in the industry). The place of Ukraine among EU member states is determined on the set of relative and absolute indicators of functioning of the industrial sector of the economy. A detailed comparative estimation of the structure of the airborne assets of the industry of Ukraine and Poland was conducted.

scholarly journals Ukraine and the European Union Industry: Comparative Statistical Analysis of Structural Advantages

2017 ◽  
pp. 22-30
Author(s):  
S. О. Ishchuk ◽  
L. Yo. Sozanskyy
Keyword(s):  
European Union ◽  
Value Added ◽  
Industrial Sector ◽  
The European Union ◽  
Member States ◽  
Domestic Industry ◽  
Eu Member States ◽  
Gross Value Added ◽  
Comparative Statistical Analysis ◽  
The Eu

The signing of the Association Agreement between Ukraine and the European Union (EU) raised the need to increase the competitiveness of domestic industry producers to the level of the EU member states. The choice of ways to improve the domestic industrial sector should be based on the results of relevant analytical assessments. The purpose of the article is to conduct a comparative statistical analysis of key structural indicators of the industry in Ukraine and EU member states by type of industrial activity. In order to achieve this goal, a methodological approach has been developed that allows for system evaluation of industry pattern and its internal and external efficiency. Using these tools, a comparative analysis of structural advantages of the industry in Ukraine and the EU member states is conducted by share of industry in output, gross value added and exports, and by efficiency measured by share of gross value added in industry output. Similar calculations are made for all types of industrial activities. The results of the analysis show that Ukraine, in spite of heavy industrial potential and significant natural and human resources, in the period of analysis (2012-2015) had only 19th position among the EU member states by industrial output and the 20th position by value added in industry The pattern of the Ukrainian industry is typical for countries with economy based on primary commodities. The key problem faced by the Ukrainian industry is its low efficiency: the 28th position by share of value added in output. The above confirms that the cost structure of industrial products is dominated by material and energy components. This signals the need for further restructuring of the industrial sector in Ukraine. Optimization of the domestic industry structure has to cover all industrial sectors and subsectors. A key optimization criterion has to be the socioeconomic efficiency enhancement, which can be achieved through increasing and restructuring the gross value added, with particular emphasis on the share of gross operating profit, mixed income.

scholarly journals The macroeconomic aspects of sport in Europe: a cross-country comparison

2020 ◽  
Vol 82 (2) ◽  
pp. 193-211
Author(s):  
Mariola Mamcarczyk ◽  
Magdalena Szyszko
Keyword(s):  
Statistical Data ◽  
Value Added ◽  
The European Union ◽  
Public Authorities ◽  
Member States ◽  
Household Spending ◽  
Eu Member States ◽  
Goods And Services ◽  
Economic Significance ◽  
Data Collections

In this paper we aim to investigate the importance of the sports sector of the economy for macrolevel performance in the European Union Member States. The problem that we address is worthy of research focus as sport is a dynamically  expanding and important sector of the economy. The increasing importance of sport in national economies cannot be fully analysed due to the lack of sufficient statistical data. In this paper, we provide a comparison of the Eurostat sports collections results and Sport Satellite Account-based examination of the contribution of sport to the GDP and value added. The analysis of statistical data is preceded by a description of the sports sector measurement. We establish that the contribution of sport is more remarkable for developed economies, however it has also been increasing over time in other EU Member States. This can be observed for employment, changes in enterprises’ statistics, and international trade. Household spending on sports goods and services also increases even if the Great Recession led to a downturn in sport consumption in some countries. The frequency and coherence of sports data collections related to its economic significance is not satisfactory. The issue needs to be given a higher priority by public authorities.

scholarly journals Informal Economy and VAT

2017 ◽  
pp. 37-49
Author(s):  
Małgorzata Sęk
Keyword(s):  
European Union ◽  
Informal Economy ◽  
Value Added ◽  
The Other ◽  
The European Union ◽  
Value Added Tax ◽  
Member States ◽  
Eu Member States ◽  
Other Hand

The aim of this paper is to discuss the interconnections between informal economy and Value Added Tax (VAT), as well as measures applied in the European Union (EU) Member States and other countries to counter VAT evasion and VAT fraud related to informal economy. It is shown in the article, that VAT and informal economy are strongly interconnected. VAT may be the cause for growth of the informal economy. But on the other hand, some VAT-related measures may be introduced to reduce or at least stop further growth of informal economy. Examples of such measures conclude the findings.

scholarly journals COVID-crisis and economic growth: Tendencies on potential growth in the European Union

2021 ◽  
Vol 71 (S1) ◽  
pp. 165-186
Keyword(s):  
European Union ◽  
Negative Impact ◽  
Growth Potential ◽  
The European Union ◽  
Potential Growth ◽  
Member States ◽  
Eu Member States ◽  
Key Factor ◽  
Negative Effect ◽  
The Eu

Abstract The main objective of this paper is to identify the impacts of the COVID-crisis on growth, in particular on growth potential in the European Union (EU), in the context of a broader growth analysis. The quantitative analysis underlying this paper focuses on the financial and economic (“Great”) recession of 2008–2009, the subsequent recovery and the period of the COVID-crisis. We provide a detailed overview of some of the mechanisms of the COVID-crisis on growth. The COVID-crisis is likely to have a direct impact on the level of potential output. A decrease in investments and labour market hysteresis may have long-lasting effects on potential growth. The former would have a negative impact on productivity. This can lead to increased inequalities and have a negative effect on social cohesion. The future development of divergences among the EU Member States is particularly important. Their possible intensification could disrupt the functioning of the euro area and the internal market. A lasting source of potential growth in the EU Member States could be productivity growth. Its decisive structural factor is the growth dynamism of total factor productivity (TFP). There are large differences in this area with regard to the level and growth dynamism of performance of the Member States. Narrowing the output gaps vis-à-vis the front-runners through deep structural reforms could be a key factor in raising growth potential. The cleansing effects of crises, which force structural change and resource reallocation, can also create new opportunities for TFP growth.

Doing Everything You Can, but Not (yet) Getting it Right: Challenges to Brussels' Great Expectations for Water Quality1

2017 ◽  
Vol 1 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Franca Angela Buelow
Keyword(s):  
Water Status ◽  
Organizational Structures ◽  
Eu Water Framework Directive ◽  
The European Union ◽  
Member States ◽  
Great Expectations ◽  
Eu Member States ◽  
European Water ◽  
Improve Water Quality ◽  
Governance Architecture

To arrive at a good status of all European water bodies is the main objective of the European Union (EU) Water Framework Directive (WFD). Since its adoption in 2000, the policy has fundamentally changed the institutional, procedural and organizational structures of Member States' water management, leading to an Europeanization of national legislation and decision-making structures. The case of WFD implementation in Schleswig-Holstein is an example of the policy's highly innovative governance architecture that unfortunately is not (yet) able to take that one last hurdle: to improve water quality and establish a good water status across EU Member States by 2015 or 2027.

Political aspects of security of the European Union Member States

2020 ◽  
pp. 97-105
Author(s):  
Aleksandra Kusztykiewicz-Fedurek
Keyword(s):  
European Union ◽  
Negative Impact ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Political Security ◽  
New Institutions ◽  
The Stability ◽  
Key Aspects ◽  
The Eu

Political security is very often considered through the prism of individual states. In the scholar literature in-depth analyses of this kind of security are rarely encountered in the context of international entities that these countries integrate. The purpose of this article is to draw attention to key aspects of political security in the European Union (EU) Member States. The EU as a supranational organisation, gathering Member States first, ensures the stability of the EU as a whole, and secondly, it ensures that Member States respect common values and principles. Additionally, the EU institutions focus on ensuring the proper functioning of the Eurozone (also called officially “euro area” in EU regulations). Actions that may have a negative impact on the level of the EU’s political security include the boycott of establishing new institutions conducive to the peaceful coexistence and development of states. These threats seem to have a significant impact on the situation in the EU in the face of the proposed (and not accepted by Member States not belonging to the Eurogroup) Eurozone reforms concerning, inter alia, appointment of the Minister of Economy and Finance and the creation of a new institution - the European Monetary Fund.

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