THE ESSENCEAND REASONSVAT TAXRATECHANGESIN THE COUNTRY OF EUROPEAN UNIONIN THE CONTEXT OFPUBLIC FINANCECRISIS

Abstract

In the crisisof public finances countryare obligated tolooking for additionalsources ofgovernment revenue. These actionsare caused bythe growingbudget deficitand consequentlyan increasedlevel of public debt. Governmentstherefore looking for the optimal solutionfor the economy andthe financial situationof the state.They can choose betweentwo ways: increasing thepublicburdenand / or areduction in public spending. Many countries havedecidedto increase theburdenof taxes, among the publicwithin the existingfiscal system. The mostefficient source offinancialincomeindirect taxesarehidden in theprices of goods andservices and thereforedecisions are madeto increasethe burdenon this account. This article presents theessence ofvalue added taxas a source ofpublic revenueand to show changes in the ratesof VAT rates inrelation tothe emergence ofcrisis in public financesin the European Uniontaking into accountthe period 2008-2013.