taxation trends in the european union (2016 edition)
TRANSCRIPT
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Taxation andCustoms Union
Data for the EU Member States, Iceland and Norway
Taxation Trends in the European Union
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More information on the European Union is available on the internet (http://europa.eu).
Luxembourg: Publications Office of the European Union, 2016
Print ISBN 978-92-79-57442-9 ISSN 1831-8789 doi:10.2785/420903 KP-DU-16-001-EN-C
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Taxation Trends in the European Union
DATA FOR THE EU MEMBER STATES, ICELAND AND NORWAY 2016 edition
DG Taxation and Customs Union
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Taxation trends in the European Union 3DG Taxation and Customs Union |
PrefaceMore than ever, tax policies and are under scrutiny, not only for their impact on businesses and the economy, but also for their effects on public finances, public services and ordinary citizens. To develop good tax policies, and to better understand existing policies, it is essential to have high quality data and comparable information about tax systems. This is the aim of Taxation Trends in the European Union which provides an overview of trends in taxation revenues, tax structures and reforms over recent years.
The 2016 edition of Taxation Trends is based upon harmonized and comparable taxation data from the National Statistical Institutes, transmitted to Eurostat and validated by Eurostat, and uses the government finance statistics as well as the more detailed National Tax Lists for each country. The statistics are based on the European System of National and Regional Accounts (ESA 2010), which is a major development of the previous system (ESA95). Progress has been achieved in the harmonisation of methodology and in the precision and accuracy of the concepts, definitions, classifications and accounting rules.
The report also draws upon valuable contributions from experts of the Ministries of Finance in all the countries covered by the report, including some additional data. We would like to express our special thanks for their many inputs and help without which the report would not have been possible.
In addition to the analysis of Europe-wide trends in Part 1, the report also includes a Part 2 with country chapters covering the 28 EU Member States, Iceland and Norway. For each country, key taxation indicators are provided on tax revenues as a percentage of GDP for the years 2002 to 2014. These are supplemented by factual tables presenting the latest tax reforms in each country and the main features of the national tax systems for personal and corporate taxes, VAT, social contributions and wealth and transaction taxes. In Annex A, the reader can find more than 80 tables of the various taxation indicators, while Annex B contains a detailed description of the methodology used to calculate the indicators.
The data and information from this report, as well as other materials, can be found on the Economic Analysis web pages of DG Taxation and Customs Union. Finally, the Taxes in Europe database contains detailed and updated information on the most important taxes in force in the EU Member States.
Stephen Quest
Director-General
Directorate-General for Taxation and Customs Union
http://ec.europa.eu/taxation_customs/taxation/gen_info/economic_analysis/index_en.htmhttps://ec.europa.eu/taxation_customs/taxes-europe-database-tedb_en
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Taxation trends in the European Union4 | DG Taxation and Customs Union
Background informationTaxation trends in the European Union is produced by the Directorate-General for Taxation and Customs Union (DG TAXUD).
The Commission staff wishes to thank the Working Group on the Structures of the Taxation Systems, composed of experts from the national Finance Ministries and run by DG TAXUD, for their very helpful oral and written contributions to the report. Nevertheless, the Commission Services bear sole responsibility for this publication and its content. This report does not necessarily reflect the views of the tax departments in the Member States.
Any questions or suggestions relating to the analysis should be addressed to:
Gatan Nicodme, Head of the unit Economic analysis, evaluation & impact assessment support European Commission, DG Taxation and Customs Union, B-1049 Brussels Email: [email protected]
Language and disseminationTaxation trends in the European Union is available in English only. The publication can be downloaded free of charge from the websites of the Directorate-General for Taxation and Customs Union (http://ec.europa.eu/taxtrends). The paper version can be purchased from any of the sales outlets listed on the website of the Publications Office of the European Union (http://publications.europa.eu).
Additional informationThe National Tax Lists for all EU countries, showing tax revenues for all major taxes, will be published online (see the sites Economic analysis of taxation and Statistics Explained). Continuously updated tax data are also available on the Eurostat website (online data code: gov_10a_taxag). Readers interested in taxation can find detailed information on the legal form and revenue of the taxes currently in force in the EU Member States in the Taxes in Europe database (TEDB).
mailto:[email protected]://ec.europa.eu/taxtrendshttp://publications.europa.euhttp://ec.europa.eu/taxation_customs/taxation/gen_info/economic_analysis/index_en.htmhttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Tax_revenue_statisticshttp://ec.europa.eu/eurostat/data/databasehttp://ec.europa.eu/tedb
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Taxation trends in the European Union 5DG Taxation and Customs Union |
AcknowledgementsThis report was prepared under the direction of Stephen Quest (Director General of DG TAXUD), Valre Moutarlier (Director at DG TAXUD) and Gatan Nicodme (Head of Unit at DG TAXUD).
The main editor of the report was Brian Sloan with contributions from Ccile Denis, Thomas Hemmelgarn and Luis Peragon Lorenzo (DG TAXUD).
Special contributions were provided by the European Semester country desks in DG TAXUD: Maksim Baranov, Reinhard Biebel, Ann-Marie Bruhn, Alain Clara, Ivana Cordasev, Ccile Denis, Eduard Folch Sogas, Galle Garnier, Roberta Grappiolo, Valeska Groenert, Morgan Guillou, Fredrika Johansson, Ursula Krampe, Arne Kubitza, Bertrand Lapalus, Beatriz Laranjeira, Stephen Lawson, Federica Liberatore, Juan Lopez Rodriguez, Constantino Lanza, Konstantin Lozev, Lucian Luca, Milena Math, Pia Michelsen, Ioanna Mitroyanni, Rosalind Moss, Carmen Muniz Sanchez, Colin ODriscoll, David OSullivan, Ela Olkuska, Martins Ozolins, Henrik Paulander, Luis Peragon Lorenzo, Tanel Petsep, Savino Rua, Barbara Schmitt-Kischel, Peter Schonewille, Vladimir Sika, Aga Skonieczna, Brian Sloan, Maria Teresa Sutich, Szabolcs Szilagyi, Bogdan-Alexandru Tasnadi, Luisa Tivrisi, Linda Traversa, Emer Traynor, Tina Tukic, Ivar Tuominen, Pierre Vandenberghe, Frank Van Driessche, Astrid Van Mierlo, Aurimas Vasylis, Gyongyi Vegh, Antonio Victoria Sanchez and Vassil Zhivkov.
Editorial assistance was provided by Petra Harvanova, Tatjana Lapunova and Stphanie Veys (DG TAXUD).
The report also benefited from the contributions and suggestions of the Working Group on the Structures of the Taxation Systems, composed of experts from the national Finance Ministries, as well as comments by colleagues from other services of the European Commission.
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Taxation trends in the European Union6 | DG Taxation and Customs Union
Contents
Preface 3
Background information 4
Acknowledgements 5
Abbreviations 12
Introduction 13
1 Development of the overall tax revenue in the European Union 15
Level and long-term trends ............................................................................................................................................................................................16
Revenue structure by type of tax ................................................................................................................................................................................20
Distribution of the tax burden by type of tax base..........................................................................................................................................20
Taxation of consumption .................................................................................................................................................................................................22
Taxation of labour .................................................................................................................................................................................................................26
Taxation of capital .................................................................................................................................................................................................................32
Environmental taxation .....................................................................................................................................................................................................36
Property Taxes .........................................................................................................................................................................................................................39
Payable tax credits ................................................................................................................................................................................................................39
2 National tax systems: Structure and recent developments 43
Austria ..........................................................................................................................................................................................................................................44
Belgium .......................................................................................................................................................................................................................................50
Bulgaria........................................................................................................................................................................................................................................56
Croatia ..........................................................................................................................................................................................................................................61
Cyprus ..........................................................................................................................................................................................................................................66
Czech Republic .......................................................................................................................................................................................................................71
Denmark .....................................................................................................................................................................................................................................76
Estonia .........................................................................................................................................................................................................................................82
Finland .........................................................................................................................................................................................................................................87
France ...........................................................................................................................................................................................................................................92
Germany .....................................................................................................................................................................................................................................97
Greece .......................................................................................................................................................................................................................................102
Hungary ...................................................................................................................................................................................................................................107
Ireland .......................................................................................................................................................................................................................................112
Italy..............................................................................................................................................................................................................................................117
Latvia..........................................................................................................................................................................................................................................123
Lithuania ..................................................................................................................................................................................................................................128
Luxembourg..........................................................................................................................................................................................................................133
Malta ..........................................................................................................................................................................................................................................139
Netherlands ...........................................................................................................................................................................................................................145
Poland .......................................................................................................................................................................................................................................150
Portugal ....................................................................................................................................................................................................................................155
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Taxation trends in the European Union 7DG Taxation and Customs Union |
Romania ...................................................................................................................................................................................................................................160
Slovakia ....................................................................................................................................................................................................................................165
Slovenia ....................................................................................................................................................................................................................................171
Spain ..........................................................................................................................................................................................................................................176
Sweden ....................................................................................................................................................................................................................................181
United Kingdom .................................................................................................................................................................................................................186
European Union ..................................................................................................................................................................................................................192
Euro area ..................................................................................................................................................................................................................................194
Iceland ......................................................................................................................................................................................................................................196
Norway .....................................................................................................................................................................................................................................201
3 Annex A: Tables 207
4 Annex B: Methodological and explanatory notes 293
Part A: Tax structure by tax type ................................................................................................................................................................................296
Part B: Tax structure by level of government ....................................................................................................................................................299
Part C: Tax structure by type of tax base ..............................................................................................................................................................299
Part D: Environmental Taxes ........................................................................................................................................................................................304
Part E: Property taxes .......................................................................................................................................................................................................307
Part F: Implicit tax rates, split of personal income tax revenues and average effective tax rate.......................................308
Bibliography 336
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Taxation trends in the European Union8 | DG Taxation and Customs Union
List of tables and graphsTable 1: VAT rates in the EU Member States, 2001-2016 ........................................................................................................................................24
Table 2: Top statutory personal income tax rates ....................................................................................................................................................30
Table 3: Tax wedges for a single worker with 67% of average earnings, no children .......................................................................32
Table 4: Top statutory corporate income tax rates .................................................................................................................................................34
Table 5: Payable tax credits ...................................................................................................................................................................................................42
Table 6: Effect of treatment of payable tax credits on total tax revenue indicators ..........................................................................42
Table F.1: Personal income tax revenue allocated to employed labour income .............................................................................330
Table F.2: Personal income tax revenue allocated to income of the self-employed .....................................................................331
Table F.3: Personal income tax revenue allocated to social transfers and pensions .....................................................................332
Table F.4: Personal income tax revenue allocated to capital income .....................................................................................................333
Graph 1: Tax revenue .................................................................................................................................................................................................................16
Graph 2: Tax revenue, EU-28 and EA-19, 2002-2014 ................................................................................................................................................17
Graph 3: Tax revenue ................................................................................................................................................................................................................17
Graph 4: Revenue structure by level of government, 2014 ..............................................................................................................................18
Graph 5: Structure of tax revenues by major type of taxes, 2014 .................................................................................................................19
Graph 6: Distribution of the total tax burden according to type of tax base 2014 ............................................................................21
Graph 7: Implicit tax rate on consumption, 1995-2014 ......................................................................................................................................22
Graph 8: Decomposition of the ITR on consumption 2014 .............................................................................................................................22
Graph 9: Development of average standard VAT rate, EU-28, 2000-2016 ................................................................................................23
Graph 10: Implicit tax rate on labour, 2002-2014 ....................................................................................................................................................26
Graph 11: Development of top personal income tax rate, 1995-2016 ......................................................................................................27
Graph 12: Composition of the implicit tax rate on labour, 2014 ...................................................................................................................28
Graph 13: Evolution of the composition of the implicit tax rate on labour, 2004-2014 .................................................................28
Graph 14: Tax wedges for a single worker with 67% of average earnings, no children ..................................................................29
Graph 15: Corporate income tax revenues, 2002-2014 ......................................................................................................................................33
Graph 16: Corporate income tax rates and average effective taxation indicators, 2000-2016 ...................................................33
Graph 17: Environmental tax revenues, 2000-2014 ...............................................................................................................................................36
Graph 18: Evolution of the structure of environmental taxes, 2004-2014 ...............................................................................................37
Graph 19: Energy tax revenues in relation to final energy consumption ................................................................................................38
Graph 20: Energy tax revenues by Member State, 2014 .....................................................................................................................................38
Graph 21: Composition of property taxes by Member State, 2014 .............................................................................................................39
Graph 22: Size of payable tax credits ..............................................................................................................................................................................41
Graph A.1: Sensitivity analysis: role of imputed social contributions and voluntary actual social contributions ........297
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Taxation trends in the European Union 9DG Taxation and Customs Union |
List of tables in Annex ATable 1: Total taxes (including compulsory actual social contributions) as % of GDP .....................................................................208
Table 2: Total taxes (excluding social contributions) as % of GDP ................................................................................................................209
Table 3: Indirect taxes as % of GDP - Total ...................................................................................................................................................................210
Table 4: Indirect taxes as % of total taxation - Total ...............................................................................................................................................211
Table 5: Indirect taxes as % of GDP - VAT ......................................................................................................................................................................212
Table 6: Indirect taxes as % of total taxation - VAT ..................................................................................................................................................213
Table 7: Indirect taxes as % of GDP - Taxes and duties on imports excluding VAT.............................................................................214
Table 8: Indirect taxes as % of total taxation - Taxes and duties on imports excluding VAT.........................................................215
Table 9: Indirect taxes as % of GDP - Taxes on products, except VAT and import duties ...............................................................216
Table 10: Indirect taxes as % of total taxation - Taxes on products, except VAT and import duties ........................................217
Table 11: Indirect taxes as % of GDP - Other taxes on production ..............................................................................................................218
Table 12: Indirect taxes as % of total taxation - Other taxes on production ..........................................................................................219
Table 13: Direct taxes as % of GDP - Total ....................................................................................................................................................................220
Table 14: Direct taxes as % of total taxation - Total ................................................................................................................................................221
Table 15: Direct taxes as % of GDP - Personal income taxes ............................................................................................................................222
Table 16: Direct taxes as % of total taxation - Personal income taxes ........................................................................................................223
Table 17: Direct taxes as % of GDP - Corporate income tax .............................................................................................................................224
Table 18: Direct taxes as % of total taxation - Corporate income tax .........................................................................................................225
Table 19: Direct taxes as % of GDP - Other .................................................................................................................................................................226
Table 20: Direct taxes as % of total taxation - Other .............................................................................................................................................227
Table 21: Social contributions as % of GDP - Total (compulsory actual contributions) ..................................................................228
Table 22: Social contributions as % of total taxation - Total (compulsory actual contributions) ..............................................229
Table 23: Social contributions as % of GDP - Employers (compulsory actual contributions) .....................................................230
Table 24: Social contributions as % of total taxation - Employers (compulsory actual contributions) .................................231
Table 25: Social contributions as % of GDP - Households (compulsory actual contributions) ..................................................232
Table 26: Social contributions as % of total taxation - Households (compulsory actual contributions)..............................233
Table 27: Capital transfers (representing taxes assessed but unlikely to be collected) as % of GDP ......................................234
Table 28: Capital transfers (representing taxes assessed but unlikely to be collected) as % of total taxation ..................235
Table 29: Taxes received by level of government as % of GDP - Central government ....................................................................236
Table 30: Taxes received by level of government as % of total taxation - Central government ................................................237
Table 31: Taxes received by level of government as % of GDP - State government .........................................................................238
Table 32: Taxes received by level of government as % of total taxation - State government.....................................................239
Table 33: Taxes received by level of government as % of GDP - Local government ........................................................................240
Table 34: Taxes received by level of government as % of total taxation - Local government ....................................................241
Table 35: Taxes received by level of government as % of GDP - Social security funds ...................................................................242
Table 36: Taxes received by level of government as % of total taxation - Social security funds ...............................................243
Table 37: Taxes received by level of government as % of GDP - EU Institutions .................................................................................244
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Taxation trends in the European Union10 | DG Taxation and Customs Union
Table 38: Taxes received by level of government as % of total taxation - EU Institutions .............................................................245
Table 39: Taxes on consumption as % of GDP - Total ...........................................................................................................................................246
Table 40: Taxes on consumption as % of total taxation - Total .......................................................................................................................247
Table 41: Taxes on consumption as % of GDP - Tobacco and alcohol.......................................................................................................248
Table 42: Taxes on consumption as % of total taxation - Tobacco and alcohol...................................................................................249
Table 43: Taxes on labour as % of GDP - Total ...........................................................................................................................................................250
Table 44: Taxes on labour as % of total taxation - Total .......................................................................................................................................251
Table 45: Taxes on labour as % of GDP - Income from employment .........................................................................................................252
Table 46: Taxes on labour as % of total taxation - Income from employment .....................................................................................253
Table 47: Taxes on labour as % of GDP - Income from employment, paid by employers.............................................................254
Table 48: Taxes on labour as % of total taxation - Income from employment, paid by employers.........................................255
Table 49: Taxes on labour as % of GDP - Income from employment, paid by employees ...........................................................256
Table 50: Taxes on labour as % of total taxation - Income from employment, paid by employees .......................................257
Table 51: Taxes on labour as % of GDP - Income from employment, paid by non-employed ..................................................258
Table 52: Taxes on labour as % of total taxation - Income from employment, paid by non-employed ..............................259
Table 53: Taxes on capital as % of GDP - Total ...........................................................................................................................................................260
Table 54: Taxes on capital as % of total taxation - Total .......................................................................................................................................261
Table 55: Taxes on capital as % of GDP - Income of corporations ................................................................................................................262
Table 56: Taxes on capital as % of total taxation - Income of corporations ............................................................................................263
Table 57: Taxes on capital as % of GDP - Income of households ..................................................................................................................264
Table 58: Taxes on capital as % of total taxation - Income of households ..............................................................................................265
Table 59: Taxes on capital as % of GDP - Income of self-employed ............................................................................................................266
Table 60: Taxes on capital as % of total taxation - Income of self-employed ........................................................................................267
Table 61: Taxes on capital as % of GDP - Stock of capital ...................................................................................................................................268
Table 62: Taxes on capital as % of total taxation - Stock of capital ...............................................................................................................269
Table 63: Environmental taxes as % of GDP - Total ................................................................................................................................................270
Table 64: Environmental taxes as % of total taxation - Total ............................................................................................................................271
Table 65: Environmental taxes as % of GDP - Taxes on energy ......................................................................................................................272
Table 66: Environmental taxes as % of total taxation - Taxes on energy ..................................................................................................273
Table 67: Environmental taxes as % of GDP - Taxes on energy, of which transport fuel taxes ...................................................274
Table 68: Environmental taxes as % of total taxation - Taxes on energy, of which transport fuel taxes ...............................275
Table 69: Environmental taxes as % of GDP - Transport taxes (excluding fuel taxes) .......................................................................276
Table 70: Environmental taxes as % of total taxation - Transport taxes (excluding fuel taxes) ...................................................277
Table 71: Environmental taxes as % of GDP - Taxes on pollution and resources ................................................................................278
Table 72: Environmental taxes as % of total taxation - Taxes on pollution and resources ............................................................279
Table 73: Taxes on property as % of GDP - Total ......................................................................................................................................................280
Table 74: Taxes on property as % of total taxation - Total ..................................................................................................................................281
Table 75: Taxes on property as % of GDP - Recurrent taxes on immovable property .....................................................................282
Table 76: Taxes on property as % of total taxation - Recurrent taxes on immovable property .................................................283
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Taxation trends in the European Union 11DG Taxation and Customs Union |
Table 77: Taxes on property as % of GDP - Other taxes on property ....................................................................................................................284
Table 78: Taxes on property as % of total taxation - Other taxes on property ................................................................................................285
Table 79: Implicit tax rate on consumption, % ...................................................................................................................................................................286
Table 80: Implicit tax rate on labour, % ...................................................................................................................................................................................287
Table 81: Implicit tax rate on energy (1) ..................................................................................................................................................................................288
Table 82: Implicit tax rate on energy, deflated (1) .............................................................................................................................................................289
Table 83: Total payable tax credits as % of GDP .................................................................................................................................................................290
Table 84: Transfer component of payable tax credits as % of GDP ........................................................................................................................291
Table 85: Effective average tax rates, non-financial sector, % ...................................................................................................................................292
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Taxation trends in the European Union12 | DG Taxation and Customs Union
AbbreviationsCountry abbreviations Commonly used acronyms
BE Belgium EU European Union
BG Bulgaria EMU Economic and Monetary Union
CZ Czech Republic
DK Denmark MS Member State
DE Germany EU-28 European Union (BE, BG CZ, DK, DE, EE, IE, EL, ES, FR, HR, IT, CY, LV, LT, LU, HU, MT, NL, AT, PL, PT, RO, SI, SK, FI, SE, UK)
EE Estonia EU-27 European Union (BE, BG CZ, DK, DE, EE, IE, EL, ES, FR, IT, CY, LV, LT, LU, HU, MT, NL, AT, PL, PT, RO, SI, SK, FI, SE, UK)
IE Ireland EA-19 Euro area (BE, DE, IE, EE, EL, ES, FR, IT, CY, LV, LT, LU, MT, NL, AT, PT, SI, SK, FI)
EL Greece EA-18 Euro area (BE, DE, IE, EE, EL, ES, FR, IT, CY, LV, LU, MT, NL, AT, PT, SI, SK, FI)
ES Spain
FR France
HR Croatia
IT Italy ECSC European Coal and Steel Community
CY Cyprus EEA European Economic Area
LV Latvia
LT Lithuania PIT Personal Income Tax
LU Luxembourg CIT Corporate Income Tax
HU Hungary EATR Effective Average Tax Rate
MT Malta ESA79 European System of Accounts 1979
NL Netherlands ESA95 European System of Accounts 1995
AT Austria ESA2010 European System of Accounts 2010
PL Poland GDP Gross Domestic Product
PT Portugal ITR Implicit Tax Rate
RO Romania VAT Value Added Tax
SI Slovenia NTL National Tax List
SK Slovakia
FI Finland : Not available
SE Sweden na Not applicable
UK United Kingdom pp Percentage points
IS Iceland (EEA member)
NO Norway (EEA member)
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Taxation trends in the European Union 13DG Taxation and Customs Union |
IntroductionTaxation Trends in the EU presents taxation data and information for the twenty-eight Member States, Iceland and Norway. The 2016 edition is bigger than last years report due to the re-introduction of several popular elements which featured in earlier editions.
The Part 1 analysis of developments in the EU re-appears, outlining with graphs and tables the main trends in taxation indicators at the EU level. It summarizes the main figures presented in the report, and also provides data on top personal and corporate statutory tax rate developments, on effective average tax rates and on the so-called tax wedge.
This is followed by the country chapters in Part 2 which, for each of the 30 countries covered in the report, present:
A summary table of the countrys tax revenues (more detailed this year than last) covering revenues from direct and indirect taxes, social contributions etc., as well as revenues by economic function (consumption, capital, labour taxes). Indicators of revenues from energy, environmental and property taxes as well as implicit tax rates are also included.
The latest tax reforms announced or introduced in the period since the last report (up to end of April 2016). The reforms are categorized by type of measure (VAT, CIT, PIT, etc.) and a brief description is provided along with the direction of change of the reform (base increase/decrease, rate increase/decrease).
A set of tables providing a snapshot of the main features of the national tax system (personal and corporate taxes, VAT, social contributions and wealth and transaction taxes). The content of these tables reflects the legislation in place on 1 January 2016, unless otherwise indicated.
The detailed statistical annexes (Annex A) also re-appear in this years report. They include detailed datasets for the main national accounts headings (direct, indirect taxes, social contributions etc.) and by economic function (consumption, capital, labour taxes), as well as energy, environmental and property taxes and implicit tax rates. These more than 80 tables were not included in the 2015 edition for reasons of timing related to the implementation of the new national accounts system. The cut-off date for most of the data in this report was 12 February 2016. This concerns the National Accounts data and the more disaggregated tax data submitted to Eurostat (the National Tax Lists) which were used for calculating revenues by economic functions as well as levels of environmental and property taxes. Some updated data were used in the tables relating to tax revenues by level of government (1 June 2016).
The methodological annex has been updated and re-introduced at the end of the report in Annex B. This provides detailed guidance on the methodology used for all the calculations carried out for the Taxation Trends publication.
As a complement to this report, the DG TAXUD website, dedicated to the economic analysis of taxation, enables users to download the information contained in Taxation Trends, as well as a pdf version of the report itself. The site also provides links to numerous other sources of data, information and analytical reports in the field of taxation. More extensive information provided by national Finance Ministries on their tax systems is available on-line in the Taxes in Europe Database (TEDB).
As always, this report has benefited from the numerous and extremely valuable contributions received from experts of the national Finance Ministries.
http://ec.europa.eu/taxation_customs/taxation/gen_info/economic_analysis/index_en.htmhttp://ec.europa.eu/taxation_customs/taxation/gen_info/info_docs/tax_inventory/index_en.htm
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15Taxation trends in the European Union DG Taxation and Customs Union |
1. Part 1: Development of the overall tax revenue in the European Union1
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1 Part 1: Development of the overall tax revenue in the European Union
16 Taxation trends in the European Union | DG Taxation and Customs Union
Level and long-term trends
THE EU REMAINS AHIGH TAX AREA
In 2014, the ratio of taxes and compulsory actual social contributions to GDP in the EU-28 was 38.8 % (1). In general, the EU tax level is high compared to other advanced economies: nearly 13 percentage points of GDP above the level for the USA and 8 percentage
points above that recorded by Japan (in 2013). It is also significantly higher than New Zealand (32.4%), Canada (30.8%), Australia (27.5% in 2013) and South Korea (24.6%). Compared to its EFTA neighbours, the EU records an average tax-to-GDP ratio almost identical to that of Iceland and Norway. However, Switzerland has a lower ratio of 27 %.
(1) The figures used in this report for tax to GDP and for total taxation correspond to the Indicator 2 definition (see Part 4 - Annex B, Box A.1).(2) Data on tax revenues collected should be used with some caution in the context of analysing the issue of government centralisation or decentralisation. In particular,
the breakdown by level of government is in general different depending on whether one looks at tax revenue data, total revenue data, or government total expenditure.
THE TAX-TO-GDP RATIO CONTINUED ITS UPWARD GROWTH IN 2014
After dipping in 2008 and 2009, EU-28 tax revenues as a percentage of GDP have risen steadily (Graph 2), and posted another year-on-year increase in 2014. The trend in the euro area has been very similar, albeit with a slightly more pronounced upward growth since 2010.
21 Member States recorded an increase in tax revenue relative to GDP in 2014 compared with 2013. The largest rises were recorded in Denmark (2.8 percentage points of GDP), Cyprus (2.6 p.p.), Malta (1.4 p.p.), Ireland (0.9 p.p.) and Slovakia (0.9 p.p.). Six Member States posted a drop in tax-to-GDP, with the largest decreases in the Czech Republic (- 0.7 p.p.), the United Kingdom (- 0.5 p.p.) and Slovenia (- 0.3 p.p.).
There is considerable diversity within the EU as regards tax levels. As Graph 3 shows, the ratio of 2014 tax revenue to GDP was highest in Denmark, France and Belgium (49.9 %, 45.9 % and 45.3 % respectively); the lowest shares were recorded in Bulgaria (27.8 % of GDP), Lithuania (27.7 %) and Romania (27.7 %).
REVENUE STRUCTURE BY LEVEL OF GOVERNMENT
In 2014, 52.6 % of the aggregate tax revenue in the EU-28 (including social contributions) was claimed by the central or federal government, 31.0 % accrued to the social security funds and 10.4 % to local government (Graph 4) (2). Less than 1 % of the revenue accrued to institutions of the European Union (mainly VAT own resource receipts as well as custom duties and agricultural levies). There are
Graph 1: Tax revenue (including social contributions), EU and selected countries, 2014 (% of GDP)
38.8 40.2
26.0
30.8 30.3 27.5
24.6
32.4
38.9 38.9
27.0
0
5
10
15
20
25
30
35
40
EU-2
8
EA-1
9
US
CA
JP (2
013)
AU
(201
3)
KR
NZ IS
NO
CH
Source: DG Taxation and Customs Union, based on Eurostat and OECD data
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1Part 1: Development of the overall tax revenue in the European Union
17DG Taxation and Customs Union | Taxation trends in the European Union
(3) For Belgium, two alternative allocations of tax revenue by sub-sector are shown: ultimately received tax revenues and tax revenues as transmitted under ESA2010 rules to Eurostat. For the purpose of compiling the EU and euro area aggregates, the National Accounts definition is used. Use is made of additional data in order to provide ultimately received taxes by sub-sectors of general government.
Graph 2: Tax revenue (including compulsory actual social contributions), EU-28 and EA-19, 2002-2014 (% of GDP)
EU-28 EA-19
36
37
38
39
40
41
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: DG Taxation and Customs Union, based on Eurostat data
Graph 3: Tax revenue (including compulsory actual social contributions), 2013-2014 (% of GDP)
2013 2014
25
30
35
40
45
50
DK FR
BE
FI
IT
AT SE
HU
LU
DE
NL
HR SI
EL
CY PT
CZ
MT ES
UK EE
PL
SK
IE
LV
BG
LT
RO
IS
NO
EU-2
8
EA-1
9
Source: DG Taxation and Customs Union, based on Eurostat data
considerable differences in structure from one Member State to another; for instance some Member states are federal or grant regions a very high degree of fiscal autonomy (Belgium (3), Germany, Austria, Spain). In the United Kingdom and Malta, the social security system is not separate from the central government level from an accounting point of view, whereas in Denmark most social security is financed through general taxation, implying large intra-governmental transfers to the social security funds.
The share of sub-central revenue (defined as municipalities plus the state level where it exists) varies from around 1 % to just under one third of the total. Sweden, Germany, Denmark and Spain in particular show high shares of total taxes received by the non-central authorities. At the other extreme, Estonias share is 1.1 %, while in Malta local government does not levy taxes and is financed by transfers from central government. As for the share of revenue accruing to social security funds, the highest values in the EU are reported by France (53.2 %) and Slovakia (42.5 %). In several countries (Ireland, Malta, UK
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1 Part 1: Development of the overall tax revenue in the European Union
18 Taxation trends in the European Union | DG Taxation and Customs Union
and Norway) there is no social security funds sub-sector in the sense of the ESA 2010 national accounts definitions, which has an impact on the tax revenue of the other sub-sectors in these countries.
The amount of the tax revenue recorded in each of the sub-sectors of general government, however, is a very
imperfect indicator of fiscal autonomy, as the sub-sectors of general government may have (legal) rights to receive other current transfers or other revenue from other sub-sectors. In several EU Member States decentralisation has been an important feature for several years already.
Graph 4: Revenue structure by level of government, 2014 (% of total taxes)
99.5 96.8 94.6
81.9
74.7 72.0 68.8 68.7 68.7 68.4 67.8 66.5 64.4 61.8 60.6
57.4 57.3 55.7 55.3 54.6 54.3 51.1 50.2 48.2 47.4
42.2
34.3 30.3 29.4
52.6
43.6
86.2
75.5
0 10 20 30 40 50 60 70 80 90
100
MT IE
U
K EE
DK
CY EL
LU
BG
C
Z PT
AT
RO
SE
HU
LT
BE
(1)
NL
HR SK
IT
LV
SI
PL
FI
ES
FR
D
E BE
EU-2
8 EA
-19
NO
IS
Central government
24.5
13.8
31.3 29.6 28.8
24.9 23.6 23.5
19.4
15.2 14.8 13.4 12.3 12.3
10.6 9.9 7.2
5.7 4.9 4.8 3.7 3.6 3.3 3.1 2.7 2.4 2.3 1.7 1.4 1.1 0.0
15.9 17.3
0 5
10 15 20 25 30 35 40
SE
DE BE
D
K ES
FI
LV
IT
CZ PL
H
R FR
SI
BE (1
) PT
H
U
UK
AT
NL
RO
LU
BG
IE
EL
SK
LT
CY EE
M
T
EU-2
8 EA
-19 IS
N
O
Sub-central level
Local government State government
53.2
42.5 40.5 40.1 39.7 39.6 38.8 38.1
33.7 33.4 32.1 31.8 31.7 30.2 29.0 28.9 28.5 28.5 27.9 27.8 26.2 24.7
16.6 16.3
6.5
0.1 0.0 0.0 0.0
31.0
38.7
0.0 0.0 0
10
20
30
40
50
60
FR
SK
BE
LT
DE
NL SI
PL
ES
H
U
HR
RO
BE (1
) IT
LV
FI
EL
AT
LU
BG
CY PT
EE
C
Z SE
DK IE
M
T U
K
EU-2
8 EA
-19 IS
N
O
Social security funds
(1) As supplied in ESA2010 National Accounts, as opposed to ultimately received revenue. (2) In the ESA2010 national accounts, the social security funds sub-sector is not distinguished for IE, MT, UK and NO.
Source: DG Taxation and Customs Union, based on Eurostat data
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19DG Taxation and Customs Union | Taxation trends in the European Union
Graph 5: Structure of tax revenues by major type of taxes, 2014 (1) (% of total taxes)
52.4 51.7 51.3 48.7
46.6 44.0 43.9 43.8 43.2 41.7 41.7 41.2 40.5 40.2 39.3 38.0
35.6 35.6 34.9 34.7 34.5 34.2 33.8 33.3 33.0 31.2 29.2 28.7
35.1 33.0
40.6
29.4
0
10
20
30
40
50
60
BG
SE
HR
HU
RO
CY LV
EL
EE
PT
LT
SI
MT PL
UK IE
IT
CZ SK
FR
ES
LU
AT
DK FI
NL BE
DE
EU-2
8
EA-1
9 IS
NO
Share of indirect taxes
67.4
44.9 42.5 42.3 41.8
39.2 38.1 36.9 34.2 32.0 32.0 31.8 31.6 29.8 29.2 28.7 27.2 27.0
23.0 22.4 21.9 21.7 21.2 19.9 19.6 18.3 17.4 16.7
33.8 31.7
49.9 45.1
0
10
20
30
40
50
60
70
DK IE
MT
UK SE
BE
FI
LU
IT
PT
AT ES
DE
CY
NL FR
EL
LV
EE
RO
SK
PL
CZ
BG
SI
LT
HU
HR
EU-2
8
EA-1
9 IS
NO
Share of direct taxes
43.3 43.2 40.2 39.7 39.6 39.2 38.4 37.4
34.9 34.2 33.9 33.8 32.1 31.6 31.0 30.2 29.1 29.0 28.9 28.8 27.8 26.2 26.2
18.4 17.1 17.0
6.5
0.1
31.4 35.5
25.5
9.5
0
10
20
30
40
50
SK
CZ LT
DE
NL SI
PL
FR
ES
AT
HU
EE
HR BE
RO
IT
LV
EL
FI
LU
BG
PT
CY
UK IE
MT SE
DK
EU-2
8
EA-1
9
NO
IS
Share of social contributions
(1) The shares can exceed 100% due to D.995 capital transfers to the relevant sectors representing amounts assessed but unlikely to be collected.
Source: DG Taxation and Customs Union, based on Eurostat data
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1 Part 1: Development of the overall tax revenue in the European Union
20 Taxation trends in the European Union | DG Taxation and Customs Union
Revenue structure by type of taxTaxes are traditionally classified as direct or indirect. Direct taxes cover personal income taxes, corporate income taxes and other income and capital taxes Indirect taxes relate to VAT, excise duties and consumption taxes, other taxes on products and production. Actual compulsory social contributions are, as a rule, directly linked to a right to benefits such as old age pensions or unemployment and health insurance.
TAX STRUCTURES DIFFER SUBSTANTIALLY BETWEEN MEMBER STATES
The structure of taxation varies quite significantly across the Member States of the EU. When it comes to the share of direct taxes in total tax revenues, Denmark has the highest share (67.4 %), followed by Ireland, Malta, the United Kingdom and Sweden (as well as Norway and Iceland) with shares lying between 40% and 50 % of revenue (see Graph 5). In general, the shares of social contributions to total tax revenues are correspondingly
low in these countries. In Denmark, there is a special reason for the extremely low share of social contributions: most welfare spending is financed out of general taxation. This requires high direct tax levels and indeed the share of direct taxation to total tax revenues in Denmark is by far the highest in the Union. However, Germany, the Netherlands and France have tax systems that are the mirror image of Denmarks, with high shares of social contributions in the total tax revenues, and relatively low shares of direct tax revenues.
A number of Member States have a much lower share of direct taxes. Many of these countries have adopted flat rate systems, which typically induce a stronger reduction in direct tax rates than indirect tax rates. These lower shares of direct taxes are counterbalanced either by relatively higher proportions of indirect taxes (for example Bulgaria (52.4 %), Croatia (51.3 %) and Hungary (48.7 %)) or by relatively larger shares of social contributions (for example Slovakia (43.3 %), Czech Republic (43.2 %) and Lithuania (40.2 %)).
Distribution of the tax burden by type of tax base
CONSIDERABLE VARIATION BETWEEN MEMBER STATES
Graph 6 shows the distribution of total tax revenue by type of tax base (consumption, labour and capital). Taxes on (employed) labour income are the largest source of revenue, contributing nearly half of all receipts, followed by consumption taxes at roughly one third and then capital taxes at around one fifth.
However, the structure of taxation differs markedly between Member States. Some Member States tend
to have a higher proportion of revenue raised from consumption taxes, and a somewhat lower proportion from taxes on labour. Bulgaria and Croatia stand out with around half of all revenues coming from consumption taxes.
Taxes on capital range from more than a quarter of total revenue (the United Kingdom, Malta, Cyprus and Luxembourg) to less than 10 % (Estonia). Taxes on capital and business income are generally more important than those on the stock of capital, except in the United Kingdom where in 2014 they are fairly evenly matched.
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1Part 1: Development of the overall tax revenue in the European Union
21DG Taxation and Customs Union | Taxation trends in the European Union
Graph 6: Distribution of the total tax burden according to type of tax base 2014 (% of total tax burden)
0%
10%
20%
30%
40%
50%
60%
BG
HR
RO
HU
EE
LV
SI
LT
MT
CY EL
PL
PT
IE
UK
CZ FI
SK
DK
LU
SE
NL ES
DE
AT IT
FR
BE
EU-2
8
EA-1
9 IS
NO
Share of consumption tax revenue
0%
10%
20%
30%
40%
50%
60%
SE
AT
DE
NL BE
FR
SK
FI
DK
CZ EE
IT
ES
SI
LV
LT
HU
LU
IE
PT
HR EL
PL
RO
UK
BG
CY
MT
EU-2
8
EA-1
9
NO
Share of labour tax revenue
Labour employed Labour non-employed
0%
10%
20%
30%
40%
50%
60%
UK
MT
CY
LU
PL
IT
BE
ES
FR
PT
EL
IE
DK
NL
RO
DE
AT SK
CZ FI
LT
BG
SE
HU
LV
SI
HR EE
EU-2
8 EA
-19 IS
NO
Capital and business income Stocks of capital
Share of capital tax revenue
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1 Part 1: Development of the overall tax revenue in the European Union
22 Taxation trends in the European Union | DG Taxation and Customs Union
Taxation on consumption
CONSUMPTION TAXES GREW SLIGHTLY IN 2014
In 2014 the implicit tax rate on consumption (4) for EU-27 was slightly higher than in 2012 and 2013, although in the euro area this growth was slightly more pronounced (see Graph 7), and after falling in 2008 and 2009 has
now climbed above its level in 2007. Although in recent years the euro area showed a lower value of the ITR on consumption than the Union as a whole, in 2014 both groups of Member States seem to be moving closer to a convergence at around 20%.
(4) The ITR on consumption is the ratio of the revenue from all consumption taxes to the final consumption expenditure of households.
Graph 7: Implicit tax rate on consumption, 1995-2014 (%)
18.0
18.5
19.0
19.5
20.0
20.5
21.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EU-27 EA-19
Source: DG Taxation and Customs Union, based on Eurostat data
Graph 8: Decomposition of the ITR on consumption 2014 (%)
VAT component Tobacco and alcohol component Energy component Residual
0%
5%
10%
15%
20%
25%
30%
35%
DK
HU
LU
FI
SE
SI
EE
NL IE
CZ AT BE
BG
FR
MT
DE
RO
PL
LV
EL
IT
UK SK
PT
LT
CY ES
EU-2
7
EA-1
9
Source: DG Taxation and Customs Union, based on Eurostat data
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1Part 1: Development of the overall tax revenue in the European Union
23DG Taxation and Customs Union | Taxation trends in the European Union
Graph 9: Development of average standard VAT rate, EU-28, 2000-2016 (%)
19.0%
19.5%
20.0%
20.5%
21.0%
21.5%
22.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: DG Taxation and Customs Union
Seven MS show a rise or more than 1 percentage point in their ITR on consumption in 2014 compared to 2012 (see Table 79 in Annex A). Of particular note were the increases in Hungary (+3.2 percentage points) and Slovenia (+2.3 percentage points). Movements in the other direction can be observed in countries such as Romania and Denmark, with reductions of 0.71 and 0.47 percentage points respectively
SIGNIFICANT DIFFERENCES IN THE COMPONENTS OF TAXATION OF CONSUMPTION
VAT typically accounts for between two-thirds and three quarters of the ITR on consumption (Graph 8). In Sweden, VAT represents 75 % of the ITR (the highest in the EU), compared with 53 % in Italy (the lowest EU value).
However, other non-VAT components are also significant. On average in the EU, energy taxes make up around 17 %
of the ITR on consumption. These are mostly composed of excise duties on mineral oils. The next important category is tobacco and alcohol which account for 8 % of the ITR on average across the EU. These taxes are a relatively significant component of the ITR on consumption for Bulgaria and Estonia, but contribute least to the indicator in Denmark, Sweden, Austria and the Netherlands.
STABILITY IN VAT RATES IN 2016
The rising trend up to 2014 in standard VAT rates has now stopped (Graph 9). Since then, only two MS have adjusted their standard VAT rates. Luxembourg raised its rate by 2 percentage points in 2015 and Romania reduced its standard VAT rate in 2016 by 4 percentage points.
The highest VAT standard rate is found in Hungary (27 %), followed by Croatia, Denmark and Sweden (all 25 %). The lowest rates are in Luxembourg (17 %) and Malta (18 %).
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1 Part 1: Development of the overall tax revenue in the European Union
24 Taxation trends in the European Union | DG Taxation and Customs Union
Tabl
e 1:
VA
T ra
tes
in th
e EU
Mem
ber
Sta
tes,
200
1-20
16
(%)
VAT
rate
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Belg
ium
Stan
dard
21
2121
2121
2121
2121
2121
2121
2121
21Re
duce
d 6/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
126/
12
Bulg
aria
Stan
dard
20
2020
2020
2020
2020
2020
2020
2020
20Re
duce
d -
--
--
-7
77
79
99
99
9Cz
ech
Repu
blic
Stan
dard
22
2222
1919
1919
1919
2020
2021
2121
21Re
duce
d 5
55
55
55
99
1010
1415
1510
/15
10/1
5
Den
mar
kSt
anda
rd
2525
2525
2525
2525
2525
2525
2525
2525
Redu
ced
--
--
--
--
--
--
--
--
Ger
man
ySt
anda
rd
1616
1616
1616
1919
1919
1919
1919
1919
Redu
ced
77
77
77
77
77
77
77
77
Esto
nia
Stan
dard
18
1818
1818
1818
1820
2020
2020
2020
20Re
duce
d 5
55
55
55
59
99
99
99
9
Irela
ndSt
anda
rd
2021
2121
2121
2121
21.5
2121
2323
2323
23Re
duce
d 12
.5(4
.3)12
.5(4
.3)13
.5(4
.3)13
.5(4
.4)13
.5(4
.8)13
.5(4
.8)13
.5(4
.8)13
.5(4
.8)13
.5(4
.8)13
.5(4
.8)9/
13.5
(4.8)
9/13
.5(4
.8)9/
13.5
(4.8)
9/13
.5(4
.8)9/
13.5
(4.8)
9/13
.5(4
.8)
Gre
ece
Stan
dard
18
1818
1819
1919
1919
2323
2323
2323
23Re
duce
d 8
(4)
8(4
)8
(4)
8(4
)9
(4.5)
9(4
.5)9
(4.5)
9(4
.5)9
(4.5)
5.5/1
16.5
/13
6.5/1
36.5
/13
6.5/1
36.5
/13
6/13
Spai
nSt
anda
rd
1616
1616
1616
1616
1618
1818
2121
2121
Redu
ced
7(4
)7
(4)
7(4
)7
(4)
7(4
)7
(4)
7(4
)7
(4)
7(4
)8
(4)
8(4
)8
(4)
10 (4
)10
(4)
10(4
)10
(4)
Fran
ceSt
anda
rd
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
19.6
20.0
20.0
20.0
Redu
ced
5.5(2
.1)5.5
(2.1)
5.5(2
.1)5.5
(2.1)
5.5(2
.1)5.5
(2.1)
5.5(2
.1)5.5
(2.1)
5.5(2
.1)5.5
(2.1)
5.5(2
.1)5.5
/7(2
.1)5.5
/7(2
.1)5.5
/10
(2.1)
5.5/1
0(2
.1)5.5
/10
(2.1)
Croa
tiaSt
anda
rd
2222
2222
2222
2222
2223
2325
2525
2525
Redu
ced
(0)
(0)
(0)
(0)
(0)
10(0
)10
(0)
10(0
)10
(0)
10(0
)10
(0)
10(0
)5/
105/
135/
135/
13
Italy
Stan
dard
20
2020
2020
2020
2020
2020
2121
2222
22Re
duce
d 10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)10
(4)
10(4
)
Cypr
usSt
anda
rd
1013
1515
1515
1515
1515
1517
1819
1919
Redu
ced
55
55
55/
85/
85/
85/
85/
85/
85/
85/
85/
95/
95/
9
Latv
iaSt
anda
rd
1818
1818
1818
1818
2121
2222
2121
2121
Redu
ced
--
95
55
55
1010
1212
1212
1212
Lith
uani
aSt
anda
rd
1818
1818
1818
1818
1921
2121
2121
2121
Redu
ced
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
5/9
Luxe
mbo
urg
Stan
dard
15
1515
1515
1515
1515
1515
1515
1517
17Re
duce
d 6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)6/
12(3
)8/
14(3
)8/
14(3
)
Hun
gary
Stan
dard
25
2525
2525
2020
2025
2525
2727
2727
2727
Redu
ced
12(0
)12
(0)
12(0
)5/
155/
155/
155
55/
185/
185/
185/
185/
185/
185/
185/
185/
18
Mal
taSt
anda
rd
1515
1518
1818
1818
1818
1818
1818
1818
Redu
ced
55
55
55
55
55
5/7
5/7
5/7
5/7
5/7
5/7
Net
herla
nds
Stan
dard
19
1919
1919
1919
1919
.019
1919
2121
2121
Redu
ced
66
66
66
66
66
66
66
66
Aust
riaSt
anda
rd
2020
2020
2020
2020
2020
2020
2020
2020
Redu
ced
1010
1010
1010
1010
1010
1010
1010
1010
Pola
ndSt
anda
rd
2222
2222
2222
2222
2222
2323
2323
2323
Redu
ced
7(3
)7
(3)
7(3
)7
(3)
7(3
)7
(3)
7(3
)7
(3)
7(3
)7
(3)
5/8
5/8
5/8
5/8
5/8
5/8
-
1Part 1: Development of the overall tax revenue in the European Union
25DG Taxation and Customs Union | Taxation trends in the European Union
VAT
rate
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Port
ugal
Stan
dard
17
1919
1921
2121
2020
2123
2323
2323
23Re
duce
d 5/
125/
125/
125/
125/
125/
125/
125/
125/
126/
136/
136/
136/
136/
136/
136/
13
Rom
ania
Stan
dard
19
1919
1919
1919
1919
2424
2424
2424
20Re
duce
d -
--
99
99
95/
95/
95/
95/
95/
95/
95/
95/
9
Slov
enia
Stan
dard
19
2020
2020
2020
2020
2020
2022
2222
22Re
duce
d 8
8.58.5
8.58.5
8.58.5
8.58.5
8.58.5
8.59.5
9.59.5
9.5
Slov
akia
Stan
dard
23
2320
1919
1919
1919
.019
2020
2020
2020
Redu
ced
1010
14-
--
1010
106/
1010
1010
1010
10
Finl
and
Stan
dard
22
2222
2222
2222
2222
2323
2324
2424
24Re
duce
d 8/
178/
178/
178/
178/
178/
178/
178/
178/
179/
139/
139/
1310
/14
10/1
410
/14
10/1
4
Swed
enSt
anda
rd
2525
2525
2525
2525
2525
2525
2525
2525
Redu
ced
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
6/12
Uni
ted
King
dom
Stan
dard
17
.517
.517
.517
.517
.517
.517
.517
.515
17.5
20.0
20.0
20.0
20.0
20.0
20.0
Redu
ced
55
55
55
55
55
55
55
55
Sim
ple
aver
ages
EU-2
8St
anda
rd
19.4
19.6
19.6
19.5
19.6
19.5
19.6
19.5
19.9
20.5
20.8
21.1
21.5
21.5
21.6
21.5
EA-1
9St
anda
rd
18.1
18.5
18.5
18.6
18.7
18.7
18.9
18.8
19.2
19.7
19.9
20.1
20.6
20.7
20.8
20.8
Sour
ce: D
G T
axat
ion
and
Cust
oms
Uni
onN
otes
: Ra
tes
give
n in
the
tab
le a
re ra
tes
app
licab
le (f
or m
ore
than
6 m
onth
in th
e ye
ar c
onsi
dere
d, o
r) on
the
1st J
uly
of th
at y
ear.
Whe
n ch
ange
of r
ates
occ
urre
d du
ring
the
year
(not
on
1st J
anua
ry) t
he e
xact
dat
e is
ava
ilab
le in
the
note
s.
Sup
er-r
educ
ed ra
tes
(bel
ow 5
%) a
re s
how
n in
bra
cket
s. N
ote
that
Par
king
rate
s ar
e no
t inc
lude
d in
this
tab
le, a
s th
ey a
re h
isto
ric ra
tes
bel
ow 1
5% n
egot
iate
d by
mem
ber
sta
tes,
and
an e
xcep
tion
to th
e EU
dire
ctiv
e (o
nly
5 m
emb
er s
tate
s re
tain
them
). Fu
ll in
form
atio
n on
VAT
rate
s is
ava
ilab
le a
t VAT
rate
s - E
urop
ean
com
mis
sion
incl
udin
g fu
ll in
form
atio
n on
redu
ced
rate
s an
d pr
oduc
ts to
whi
ch th
ey a
re a
pplic
able
Bu
lgar
ia: R
educ
ed ra
te in
crea
sed
to 9
% o
n 1.
04.2
011
C
zech
Rep
.: St
anda
rd ra
te d
ecre
ased
to 1
9 %
on
1.05
.200
4
Esto
nia:
Sta
ndar
d ra
te in
crea
sed
to 2
0 %
on
1.07
.200
9
Gre
ece:
All
rate
s w
ere
incr
ease
d on
01.
04.2
005.
A fu
rthe
r gen
eral
incr
ease
occ
urre
d on
15/
03/2
010
(to 5
/10
% a
nd 2
1%, f
ollo
wed
the
sam
e ye
ar b
y th
e in
crea
se to
5.5
/11
and
23 %
, whi
ch o
ccur
red
on J
uly
1st.
Redu
ced
rate
incr
ease
d to
13%
and
sup
er re
duce
d ra
te to
6.5
% o
n 1.
1.20
11. S
uper
redu
ced
rate
is lo
wer
ed to
6%
as
of 2
0.07
.201
5.
Spai
n: T
he 2
010
incr
ease
(red
uced
rate
to 8
% a
nd s
tand
ard
rate
to 1
8%) o
ccur
red
on 1
st J
uly.
Bot
h ra
tes
wer
e fu
rthe
r inc
reas
ed o
n 01
.09.
2012
(to
10%
and
21%
).
Fran
ce: B
efor
e 01
.04.
2000
, sta
ndar
d ra
te w
as e
qual
to 2
0.6
%.
C
roat
ia: S
tand
ard
rate
incr
ease
d to
23
% o
n 01
.08.
2009
. A fu
rthe
r inc
reas
e - t
o 25
% -
took
pla
ce o
n 01
.03.
2012
.
Irela
nd: I
rela
nd: T
he (s
uper
-) re
duce
d ra
te w
as 4
% o
n 01
.03.
1999
. It i
ncre
ased
to 4
.2%
on
01.0
3.20
00.T
he ra
te in
crea
sed
to 4
.3%
on
01.0
1.20
01 a
nd it
incr
ease
d to
4.4
% o
n 01
.01.
2004
.The
rate
incr
ease
d to
4.8
% o
n 01
.01.
2005
and
re
mai
ns a
t thi
s ra
te a
t pre
sent
.
Stan
dard
rate
incr
ease
d to
21
% o
n 01
.03.
2002
. Sta
ndar
d ra
te in
crea
sed
furt
her t
o 21
.5 %
on
01.12
.200
8. S
tand
ard
rate
dec
reas
ed to
21%
on
01.0
1.20
10. S
tand
ard
rate
incr
ease
d to
23%
on
01.0
1.20
12 a
nd re
mai
ns a
t thi
s ra
te. A
n ad
ditio
nal r
educ
ed ra
te o
f 9 %
was
intr
oduc
ed o
n 01
.07.
2011
.
Italy
: Sta
ndar
d ra
te in
crea
sed
to 2
1 %
on
17.0
9.20
11. A
furt
her i
ncre
ase
- to
22 %
- to
ok p
lace
on
01.1
0.20
13.
Cy
prus
: The
redu
ced
rate
of 5
% w
as in
trod
uced
on
01.0
7.20
00 to
geth
er w
ith th
e in
crea
se o
f the
sta
ndar
d ra
te fr
om 8
% to
10
%. S
tand
ard
rate
incr
ease
d to
13%
on
01.0
7.20
02. T
he s
econ
d re
duce
d ra
te o
f 8%
was
intr
oduc
ed o
n 01
.08.
2005
.
Stan
dard
rate
incr
ease
d to
17
% o
n 01
.03.
2012
, and
furt
her i
ncre
ased
to 1
8 %
on
14.0
1.20
13. O
n 13
.01.
2014
the
seco
nd re
duce
d ra
te in
crea
sed
to 9
% a
nd th
e st
anda
rd ra
te in
crea
sed
to 1
9 %
.
Latv
ia: R
educ
ed ra
te d
ecre
ased
to 5
% o
n 01
.05.
2004
. Sta
ndar
d ra
te d
ecre
ased
to 2
1 %
on
01.0
7.20
12.
Li
thua
nia:
Red
uced
rate
(5 %
) int
rodu
ced
on 0
1.05
.200
0. S
tand
ard
rate
incr
ease
d to
19
% o
n 01
.01.
2009
and
furt
her i
ncre
ased
to 2
1 %
on
01.0
9.20
09.
Lu
xem
bou
rg: T
he s
econ
d re
duce
d ra
te in
the
tab
le is
act
ually
a p
arki
ng ra
te.
H
unga
ry: T
he s
econ
d re
duce
d ra
te (1
5 %
) was
ab
olis
hed
on 0
1.09
.200
6. R
eint
rodu
ced
on 0
1.07
.200
9 at
18
% to
geth
er w
ith th
e in
crea
sed
of th
e st
anda
rd ra
te to
25
%.
N
ethe
rland
s: St
anda
rd ra
te in
crea
sed
to 2
1 %
on
1.10
.201
2
Pola
nd: T
he (s
uper
-)red
uced
rate
of 3
% w
as in
trod
uced
on
04.0
9.20
00.
Po
rtug
al: S
tand
ard
rate
incr
ease
d to
19
% o
n 05
.06.
2002
. Sta
ndar
d ra
te fu
rthe
r inc
reas
ed to
21
% o
n 01
.07.
2005
. Sta
ndar
d ra
te d
ecre
ased
to 2
0 %
on
01.0
7.20
08. A
ll ra
tes
incr
ease
d by
1 %
on
01/0
7/20
10.
Ro
man
ia: T
he s
econ
d re
duce
d ra
te (5
%) i
ntro
duce
d on
01.
12.2
008.
Sta
ndar
d ra
te in
crea
sed
to 2
4 %
on
01.0
7.20
10. S
tand
ard
rate
dec
reas
ed to
20
% o
n 01
.01.
2016
.
Slov
enia
: Red
uced
rate
incr
ease
d to
9.5
% a
nd s
tand
ard
rate
incr
ease
d to
22
% o
n 1.
07.2
013
Sl
ovak
ia: T
he s
econ
d re
duce
d ra
te (6
%) i
ntro
duce
d on
01.
05.2
010.
Ab
olis
hed
on 0
1.01
.201
1 to
geth
er w
ith th
e st
anda
rd ra
te in
crea
se to
20
%.
Fi
nlan
d: S
econ
d re
duce
d ra
te d
ecre
ased
to 1
2 %
on
1.10.
2009
. Sec
ond
redu
ced
rate
sub
sequ
ently
incr
ease
d to
13
% o
n 01
.07.
2010
toge
ther
with
the
incr
ease
of t
he fi
rst r
educ
ed ra
te to
9 %
and
the
incr
ease
of t
he s
tand
ard
rate
to 2
3 %
.
Uni
ted
King
dom
: Sta
ndar
d ra
te in
crea
sed
to 2
0 %
on
04.0
1.20
11
Tabl
e 1:
VA
T ra
tes
in th
e EU
Mem
ber
Sta
tes,
200
1-20
16 (c
ontin
ued)
(%
)
hhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf
-
1 Part 1: Development of the overall tax revenue in the European Union
26 Taxation trends in the European Union | DG Taxation and Customs Union
Taxation of labour
SIGNIFICANT INCREASE IN THE TAX BURDEN ON LABOUR SINCE 2009
Since the economic crisis, arguments in favour of lowering the tax burden on labour have gained traction.
However, achieving this aim remains difficult, as can be seen from the continuing upward trend displayed since 2009 of the implicit tax rate on labour (5).
Since falling sharply in 2009 and levelling off in 2010, both the EU-28 and EA-18 averages have climbed back to pre-crisis levels (see Graph 10).
(5) The ITR on labour is calculated as the ratio of taxes and