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Value-Added Tax (VAT)

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EU tax revenue stability amid global financial crisis European public debt crisis and Eurozone recession tax policy

Tax Policy and Economic Downturns in Europe

While some temporary policies can help in a crisis, policymakers should focus their efforts on sustainable policies that support growth and the resilience of businesses (and government coffers) over the long term.

6 min read
unlocking global growth and role of taxation in promoting economic growth Tax Conference

How to Unlock Global Growth: The Role of Taxation

Our recent policy conference brought together academics and political leaders to present research on some of the most pressing issues in global tax policy and to discuss solutions that can unlock genuine global growth.

9 min read
Stockholm Sweden Scandinavian tax systems to fund large social safety net and public service programs

Insights into the Tax Systems of Scandinavian Countries

Scandinavian countries are well known for their broad social safety net and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. So how do Scandinavian countries raise their tax revenues?

7 min read
Portugal inflation tax policies include Portugal VAT exemption for value added tax goods and services

VAT Carveouts in Portugal

The Portuguese government has introduced plans to exempt “essential” food items from its value-added tax (VAT) in response to the recent inflation spike. While this may sound like a reasonable measure on the surface, it comes with numerous unintended consequences that compromise its effectiveness.

4 min read
2023 spain tax reform and spain tax policy including Spain wealth tax and Spain windfall tax policies

Spain Is Doubling Down on Poor Tax Policy

Spain should follow the examples of Italy and the UK and enact tax reforms that have the potential to stimulate economic activity by supporting private investment while increasing its international tax competitiveness.

7 min read
Global excise tax trends and global excise tax applications data and research on excise taxes

Global Excise Tax Application and Trends

When designed well, excise taxes discourage the consumption of products that create external harm and generate revenue for funding services that ameliorate social costs. The effectiveness of excise tax policy depends on the appropriate selection of the tax base and tax rate, as well as the efficient use of revenues.

83 min read
Chile tax reform 2023 Chile Boric business tax reform to Chile corporate tax reform

Chile Needs Pro-Growth Tax Reform

As Chile looks to the future, policymakers might want to follow the UK’s example. Policymakers should focus on growth-oriented tax policies that encourage private and foreign direct investment, savings, and entrepreneurial activity, increasing Chile’s international tax competitiveness.

2 min read
EU tax research The European Commission and the Taxation of the Digital Economy EU digital levy

EU Taxation: Prioritizing Geopolitics over Revenue

If the EU wants to strategically compete with economic powers like the United States or China, it needs principled, pro-growth tax policy that prioritizes efficient ways to raise revenue over geopolitical ambitions.

6 min read
2023 VAT rates in Europe, 2023 VAT rates by country, 2023 value-added tax rates in Europe and 2023 value-added tax rates by country

VAT Rates in Europe, 2023

The EU countries with the highest standard VAT rates are Hungary (27 percent), Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 16 percent, followed by Malta (18 percent), Cyprus, Germany, and Romania (all at 19 percent).

4 min read
Actionable VAT Policy Gap in Europe including VAT gap and VAT revenue potential in Europe

Actionable VAT Policy Gap in Europe

Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. However, European countries differ significantly in how efficiently they raise VAT revenues. One way to measure a country’s VAT efficiency is the VAT Gap.

3 min read

VAT Expansion and Labor Tax Cuts

Since VAT revenues are such a significant and stable contributor to overall government revenues, EU policymakers should pay particular attention to how efficiently those revenues are raised.

22 min read
Chile tax reform Chile income tax system, Taxes in chile

Chile’s Tax Reform Heads in the Wrong Direction

As Chile looks to the future, the accelerated deductions for capital investment costs should be extended and made permanent while unnecessary tax hikes on individuals and capital should be avoided. Policymakers should focus on growth-oriented tax policy that encourages investment, savings, and entrepreneurial activity, increasing Chile’s international tax competitiveness.

4 min read
EU tobacco tax directive EU cigarette tax rates 2021 VAT EU reforms

The Future of Tobacco Taxation in Europe

Later this week, the European Union is expected to release a new Tobacco Tax Directive, the first update in more than a decade. Early reports indicate that the EU will propose a significant increase to the existing minimum cigarette tax rates levied across the Union and expand the product categories that are taxed, including a block-wide vaping tax.

7 min read
International Rankings of Germany's Tax System. Learn more about Germany tax system.

International Tax Competitiveness Index 2022

While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.

41 min read