Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union
The main purpose of this article is to assess Croatia’s fiscal capacity in 2007 by means of the National Accounts Supply and Use Tables (SUT) approach and its harmonisation with EU regulations. National fiscal capacity is important for assessing an EU member country’s contribution to the EU budget....
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Institute of Public Finance
2012-09-01
|
| Series: | Financial Theory and Practice |
| Subjects: | |
| Online Access: | http://www.ijf.hr/upload/files/file/FTP/2012/3/sutalo-vuglar-ivandic.pdf |
| _version_ | 1819064043515674624 |
|---|---|
| author | Ivan Sutalo Jadranka Vuglar Neven Ivandic |
| author_facet | Ivan Sutalo Jadranka Vuglar Neven Ivandic |
| author_sort | Ivan Sutalo |
| collection | DOAJ |
| description | The main purpose of this article is to assess Croatia’s fiscal capacity in 2007 by means of the National Accounts Supply and Use Tables (SUT) approach and its harmonisation with EU regulations. National fiscal capacity is important for assessing an EU member country’s contribution to the EU budget. Based on theoretical considerations and EU regulations, Croatia’s GDP expenditure components for 2004 were used for the approximation of Croatia’s theoretical value added tax (VAT) base and a weighted average VAT rate (WAVR). The harmonisation of Croatia’s intermediate VAT base with EU regulations was carried out using cash receipts from the Tax Authority, gross national income (GNI) and WAVR. If the theoretical VAT base of any EU member country is under 50% of GNI then it is used as a base for the calculation of country contribution to EU budget, otherwise it is capped at 50% of GNI. The results of this assessment show that Croatia’s harmonised 2007 VAT base is in the zone of capping and that Croatia’s WAVR is bigger than those of all but one of the 12 new EU member states, while a comparison of theoretical VAT to VAT net cash receipts indicates that there is room for upward revisions of GDP/GNI. |
| first_indexed | 2024-12-21T15:24:18Z |
| format | Article |
| id | doaj.art-8317250d801242b387071f53b1dd7e45 |
| institution | Directory Open Access Journal |
| issn | 1846-887X 1845-9757 |
| language | English |
| last_indexed | 2024-12-21T15:24:18Z |
| publishDate | 2012-09-01 |
| publisher | Institute of Public Finance |
| record_format | Article |
| series | Financial Theory and Practice |
| spelling | doaj.art-8317250d801242b387071f53b1dd7e452022-12-21T18:58:57ZengInstitute of Public FinanceFinancial Theory and Practice1846-887X1845-97572012-09-01363297320Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European UnionIvan SutaloJadranka VuglarNeven IvandicThe main purpose of this article is to assess Croatia’s fiscal capacity in 2007 by means of the National Accounts Supply and Use Tables (SUT) approach and its harmonisation with EU regulations. National fiscal capacity is important for assessing an EU member country’s contribution to the EU budget. Based on theoretical considerations and EU regulations, Croatia’s GDP expenditure components for 2004 were used for the approximation of Croatia’s theoretical value added tax (VAT) base and a weighted average VAT rate (WAVR). The harmonisation of Croatia’s intermediate VAT base with EU regulations was carried out using cash receipts from the Tax Authority, gross national income (GNI) and WAVR. If the theoretical VAT base of any EU member country is under 50% of GNI then it is used as a base for the calculation of country contribution to EU budget, otherwise it is capped at 50% of GNI. The results of this assessment show that Croatia’s harmonised 2007 VAT base is in the zone of capping and that Croatia’s WAVR is bigger than those of all but one of the 12 new EU member states, while a comparison of theoretical VAT to VAT net cash receipts indicates that there is room for upward revisions of GDP/GNI.http://www.ijf.hr/upload/files/file/FTP/2012/3/sutalo-vuglar-ivandic.pdftheoretical VATweighted average VAT rateCroatia’s fiscal capacityCroatian contribution base for the EU budget |
| spellingShingle | Ivan Sutalo Jadranka Vuglar Neven Ivandic Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union Financial Theory and Practice theoretical VAT weighted average VAT rate Croatia’s fiscal capacity Croatian contribution base for the EU budget |
| title | Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union |
| title_full | Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union |
| title_fullStr | Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union |
| title_full_unstemmed | Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union |
| title_short | Importance of theoretical value added tax for Croatia’s fiscalcapacity in the context of the European Union |
| title_sort | importance of theoretical value added tax for croatia s fiscalcapacity in the context of the european union |
| topic | theoretical VAT weighted average VAT rate Croatia’s fiscal capacity Croatian contribution base for the EU budget |
| url | http://www.ijf.hr/upload/files/file/FTP/2012/3/sutalo-vuglar-ivandic.pdf |
| work_keys_str_mv | AT ivansutalo importanceoftheoreticalvalueaddedtaxforcroatiasfiscalcapacityinthecontextoftheeuropeanunion AT jadrankavuglar importanceoftheoreticalvalueaddedtaxforcroatiasfiscalcapacityinthecontextoftheeuropeanunion AT nevenivandic importanceoftheoreticalvalueaddedtaxforcroatiasfiscalcapacityinthecontextoftheeuropeanunion |