Value-Added Tax (VAT) Archive
Chile Tax Reform Recommendations | Tax Foundation
March 16, 2023
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TweetShareSharePin0 Shares Last week, Chile’s lower house of Congress rejected President Gabriel Boric’s ambitious tax reform bill. The proposal fell short of the 78 votes required to pass, with only 73 in favor, 71 against, and 3 abstentions. This new blow to the government comes six months after a new constitution backed by Boric was
EU Digital Tax & Global Tax Deal | EU Digital Levy
March 8, 2023
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TweetShareSharePin0 Shares At a recent G20 meeting of finance chiefs, French Finance Minister Bruno Le Maire declared that the chances of Pillar One succeeding are “slim” and therefore “a digital tax should be extended to the European level as soon as possible.” This analysis of Pillar One’s status is not surprising, and Le Maire’s reaction
Sources of US Government Revenue
February 27, 2023
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TweetShareSharePin0 Shares Policy and economic differences among OECD countries have created variances in how they raise tax revenue, with the United States deviating substantially from the OECD average on some sources of revenue. Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is
Sources of Government Revenue, 2023
February 23, 2023
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TweetShareSharePin0 Shares Developed countries raise tax revenue through individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes—the combination of which determines how distortionary or neutral a tax system is. For example, taxes on income can do more economic harm than taxes on consumption and property. Countries across
2023 VAT Rates in Europe | EU VAT Rates
January 31, 2023
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TweetShareSharePin0 Shares More than 170 countries worldwide—including all European countries—levy a Value-Added Tax (VAT) on goods and services. As today’s tax map shows, EU Member States’ VAT rates vary across countries, though they’re somewhat harmonized by the European Union (EU). The VAT is a consumption tax assessed on the value added in each production stage
Actionable VAT Policy Gap in Europe
January 17, 2023
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TweetShareSharePin0 Shares Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in European Union countries. However, countries differ significantly in how efficiently they raise VAT revenue. One way to measure a country’s VAT efficiency is the VAT Gap—the difference between revenue that should be collected under an ideal VAT system and the amount that gets collected.
VAT Gap – Value-Added Tax Expansion and Labor Tax Cuts
January 10, 2023
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TweetShareSharePin0 Shares Key Findings The value-added tax (VAT) is a major source of revenue for EU countries and is one of the EU’s own resources. For Member States, it represents on average 17.8 percent of their total tax revenue. For the EU, VAT revenue represented roughly 7.5 percent of its total revenue in 2021. While
Chile Tax Reform Heads in the Wrong Direction
December 8, 2022
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TweetShareSharePin0 Shares The Tax Foundation recently released the 2022 International Tax Competitiveness Index (ITCI), measuring the complexity and neutrality of countries’ tax systems. Over the years, Chile has consistently remained in the lower half of the Index’s rankings, and in the 2022 version of the Index, Chile fell from 26th to 27th (out of 38
Future of Tobacco Taxation in Europe
December 5, 2022
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TweetShareSharePin0 Shares 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,
Spain Tax Rankings 2022 International Tax Competitiveness Index
November 4, 2022
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TweetShareSharePin0 Shares Tax Foundation recently released the 2022 International Tax Competitiveness Index (ITCI) measuring the competitiveness and neutrality of countries’ tax systems. Since 2020, Spain has dropped from 26th to 34th (out of 38 countries) in the ITCI due to multiple tax hikes, new taxes, and weak performances in all five index components. In Spain’s
