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Value-Added Tax (VAT)

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international tax avoidance To help countries face the pandemic-related financing needs while reducing inequality, the International Monetary Fund (IMF) has released a series of policy recommendations based on a temporary COVID-19 tax, levied on high incomes or wealth. IMF tax proposals: shrink inequality or harm pandemic economic recovery? OECD work plan, BEPs 2.0, base erosion, profit allocation, global minimum tax, base erosion and profit shifting oecd

IMF Tax Proposals: Shrink Inequality or Sink Post-Pandemic Recovery?

To help countries face the pandemic-related financing needs while reducing inequality, the International Monetary Fund (IMF) has released a series of policy recommendations based on a temporary COVID-19 tax, levied on high incomes or wealth.

4 min read
New Hampshire Business Profits Tax, New Hampshire Business Enterprise Tax, New Hampshire business tax cut, New Hampshire House Bill 10, New Hampshire Income Tax

New Hampshire Bill Aims to Reduce Tax Burden on Businesses

A year ago, it seemed possible that New Hampshire was headed toward a triggered tax increase. Instead, lawmakers may trim business tax rates and begin the phaseout of the state’s tax on interest and dividend income, which would take away the asterisk and make New Hampshire the ninth state to forgo an individual income tax altogether.

4 min read
Consumption taxes in Europe, reliance on consumption taxes in Europe, reliance on consumption tax revenue in Europe, taxes on goods and services in Europe

Reliance on Consumption Taxes in Europe

Hungary relies the most on consumption tax revenue, at 45.3 percent of total tax revenue, followed by Latvia and Estonia at 45.1 percent and 42.4 percent, respectively.

2 min read
UK 2021 budget Rishi sunak 2021 UK budget 2021

An Investment Boost in the UK’s 2021 Budget

The UK’s Chancellor of the Exchequer Rishi Sunak released the 2021 budget, and most important for near-term growth is the significant boost to capital allowances.

5 min read
UK taxes, UK tax reform 2021 UK tax reform British tax reform, 2021 UK budget

Brits to Prepare for Tax Reforms

Tax hikes or spending cuts implemented early in the year might undermine the desirable rapid recovery of the economy. The UK should focus on implementing tax reforms that have the potential to stimulate economic recovery by supporting business investment and employment while increasing its international tax competitiveness.

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

The European Commission and the Taxation of the Digital Economy

The consultation on the EU’s digital levy provides an opportunity for policymakers and taxpayers to reflect on the underlying issues of digital taxation and potential consequences from a digital levy. Unless the EU digital levy is designed with an OECD agreement in mind, it is likely to cause more uncertainty in cross-border tax policy.

12 min read
VAT revenues declined in 2020. VAT rates and VAT revenues amid the coronavirus pandemic. VAT covid analysis

Value-added Taxes in the Pandemic

Many governments have chosen to use VAT as a tool to provide tax relief for consumption in various sectors throughout the pandemic, but in the long term, VAT should not be used as a tool for relief.

3 min read
Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. Actionable VAT Policy Gap 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
Tax Cuts and Jobs Act offshoring OECD BEPS project, OECD consultation document, OECD multinationals, Consumption tax policies in OECD countries, Consumption taxes in OECD countries

Consumption Tax Policies in OECD Countries

Despite the potential of consumption taxes as a neutral and efficient source of tax revenues, many governments have implemented policies that are unduly complex and have poorly designed tax bases that exclude many goods or services from taxation, or tax them at reduced rates.

40 min read
2021 Value-Added Tax Rates in Europe, 2021 VAT rates in Europe

VAT Rates in Europe, 2021

More than 140 countries worldwide—including all European countries—levy a Value-Added Tax (VAT) on goods and services.

4 min read
Spain Recovery Plan Tax Hikes 2020 Spanish Regional Tax Competitiveness Index, Spain economic recovery, Spain recovery budget, Spain recovery plan

Spain’s Recovery Budget Comes with Tax Hikes

While other countries in Europe are working towards introducing tax cuts and stimulating economic recovery by supporting business investment and employment, Spain is putting more fiscal pressure on households and businesses.

4 min read
VAT Gap EU member state 2020

New European Commission Report: VAT Gap

Just as COVID-19 is putting pressure on other sources of revenue, the loss of VAT revenues resulting from the crisis will force governments to evaluate their VAT systems.

3 min read
Japanese tax and benefit system working parents and Japan tax revenue

Revenue Gains in Asian and Pacific Countries Likely Offset by COVID-19

Because of the COVID-19 pandemic and the associated economic crisis, countries in the Asia-Pacific region will see a differentiated impact on their capacity of mobilizing domestic revenue depending on the structure of their economy. According to the OECD report, those economies that rely mostly on natural resources, tourism, and trade taxes are especially vulnerable.

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

Germany Adopts a Temporary VAT Cut

Tax policy responses to the pandemic should be designed to provide immediate support while paving the way to recovery. A temporary VAT rate cut in the context of an inefficient VAT system is likely to deliver mixed results at best.

4 min read

Lessons from Alberto Alesina for U.S. Lawmakers

Alesina’s work suggests that raising taxes to reduce the federal deficit and national debt would be an economic mistake. The less economically damaging path is to cut spending, what some have called austerity policies.

3 min read