Theoretical Considerations on VAT Structure Rates in the European Union

According to the well-known statement of the American scientist Benjamin Franklin, the Polymath, in a letter to Jean-Baptiste Leroy in 1789: “Nothing is certain in this world, excepting death and taxes”. This article provides an overview of theoretical concepts existing in the specialized literature regarding VAT rates. The present paper summarizes the current VAT rates applied by member states inEUand the definition of the concept. Generally speaking, the VAT systems in place across the European Union are still quite heterogeneous, despite the common legal framework and guidelines in place. In addition to the reduced rates, some Member States also have super-reduced rates, parking rates and zero rates. Also, I highlight the evolution of the VAT Revenue in 2017-2018. Besides these, I underlined the image of the emergent states regarding the percentage in GDP of the indirect, direct and social contributions and VAT average rate, in comparison with the developed countries.