Is the Value Added Tax System Sustainable? The Case of the Czech and Slovak Republics

Krzikallová, Kateřina; Tošenovský, Filip

doi:10.3390/su12124925

Cited by 16 publications

(9 citation statements)

References 46 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Currently, all members of the European Union are obliged to introduce VAT in the form of a value added tax [7]. The value added tax is an important part of revenues of the European Union and its Member States [8].…”

Section: Review Of the Literaturementioning

confidence: 99%

VAT Efficiency—A Discussion on the VAT System in the European Union

Kowal

Przekota

2021

Sustainability

View full text Add to dashboard Cite

The effectiveness of the tax system can be analysed in various ways. According to the authors one of manifestations of such effectiveness is resistance to tax evasion. This phenomenon is influenced by multiple factors, with few being the level of VAT rates and the number of rates in force in the country concerned. The aim of the considerations is therefore to analyse how the standard VAT rate as well as the number of rates affect the effectiveness of this tax. The research was based on a literature query in the field of value added tax in the European Union. In addition, the problem of tax evasion was indicated and the aggregated data on the size of the tax gap in the Member States were presented. Then, there are the results of the research for 27 European Union countries for 2011–2019. The efficiency of VAT collection was modelled using square function, determining the significance of the parameters of this function, as well as the value of abscissa, which made it possible to group the countries based on how they maintained the efficiency of VAT collection over the analysed period of time. The final part of the study concentrates on the relationship between the efficiency of tax collection and the amount of both the basic rate and the number of rates. The conclusions of the research are as follows: a tax system with a small number of reduced rates, and preferably with one relatively low standard rate, is the system least susceptible to tax fraud. The research also shows a positive correlation between the value of the basic VAT rate along with the number of preferential rates and the scale of the tax gap, i.e., in countries with a higher standard VAT rate and a greater number of preferential rates, the tax gap is greater. The study will enable further investigation into the strategy of determining the optimal VAT rate and the process of its unification. Proposed changes may contribute to increasing the efficiency of VAT administration in EU countries, reducing the shadow economy, tax fraud and positively influencing economic growth.

show abstract

Section: Review Of the Literaturementioning

confidence: 99%

VAT Efficiency—A Discussion on the VAT System in the European Union

Kowal

Przekota

2021

Sustainability

View full text Add to dashboard Cite

show abstract

“…The self-employed person is allowed to keep tax evidence if he/she does not exceed the turnover determined by the Accounting Act for the accounting period. Compared with bookkeeping, tax evidence is less demanding [22]. For legal entities it is mandatory that they must keep accounting as [23] claims.…”

Section: Evaluation Of Criteriamentioning

confidence: 99%

Micro Family Businesses in the Czech Republic from the Perspective of Multiple Criteria Decision-Making

Meier¹

2021

SHS Web of Conf.

View full text Add to dashboard Cite

Research background: Family businesses are undoubtedly important in both the Czech and international economy. They also play a crucial part in globalization. They have always been providing the largest job source in the private sector all over the world. However, over all these years, there has not been a unified definition of family business, which makes the government hard to distinguish between family and non – family business. Thus, this complicated the administrative and legal process. Finally, in 2019, the definition of the family business in the Czech Republic has been specified, which has facilitated many administrative and legal processes. Simultaneously, the management of Czech family businesses is currently facing the first “post-revolutionary” transition of generations. Many family businesses are deciding whether to maintain or to change the type of business entities. Purpose of the article: This article aims to determine the most advantageous legal form of business for micro family businesses. Methods: This article uses the Saaty pair comparison method and TOPSIS method. In addition to the methods of analysis, synthesis, and comparison, the selected methods of multiple criteria decision making are used in the article. Findings & Value added: The results of the decision analysis revealed that, based on the criteria considered (legal, accounting, tax and managerial), the most optimal legal form of the family business is self-employed. Apart from the results, the research adds value to this topic for the Czech business environment, in which future scholars can compare between the Czech Republic and the other countries.

show abstract

“…The other paper by tries to quantify the possible impact on taxable entities belonging to the category of small and middle-sized enterprises. Krzikallova and Tosenovsky (2020) use the regression methods for the time series official data on copper exports from the Czech Republic to Slovakia, along with the relevant statistical tests to detect the potential significance of new legislative instruments, i.e., the VAT control statement and the reverse charge mechanism. Arltova et al (2020), who evaluate the effectiveness of measures against VAT evasion as introduced in the Czech Republic, are closest to this article.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Fiscal Effect of VAT Control Statement - Case Study of the Czech Republic

Moravec¹,

Hinke²,

Borsiczká³

2021

Acta Univ. Agric. Silvic. Mendelianae Brun.

View full text Add to dashboard Cite

This article first aims to identify the final fiscal amount of the VAT control statement in the selected region and then to transform it to determine the theoretical fiscal amount in the entire Czech Republic. The second goal is to identify a possible impact of VAT control statements on tax evasion. For this purpose, the following tools have been used: calls for submission of control statements, reasons to initiate inspection arising from matching the control statements, tax audits, and the process to remove tax doubts. Using the foregoing tools, the theoretical fiscal revenue is quantified and then compared with the VAT gap from 2015 to 2016. The VAT gap is measured by adjusting the gross domestic product; the data from the national accounts database published by the Czech Statistical Office are used as the basic data source. The authors have arrived at the conclusion that once the financial administration implemented the selected tools for total tax collection, then right after implementing the VAT control statements in 2016 the VAT gap slightly decreased in comparison with the previous year (and in proportion to year-on-year comparison of GDP), which resulted in the increase in the overall VAT collection.

show abstract

Is the Value Added Tax System Sustainable? The Case of the Czech and Slovak Republics

Cited by 16 publications

References 46 publications

VAT Efficiency—A Discussion on the VAT System in the European Union

VAT Efficiency—A Discussion on the VAT System in the European Union

Micro Family Businesses in the Czech Republic from the Perspective of Multiple Criteria Decision-Making

Fiscal Effect of VAT Control Statement - Case Study of the Czech Republic

Contact Info

Product

Resources

About