Non-VAT Taxes on Value-Added: The European Union Experience
3 Pages Posted: 10 Nov 2013
Date Written: August 9, 2010
In this article, the authors note that a transaction-based credit income VAT is not the only way to impose a broad-based VAT. Japan uses a subtraction-method VAT, and several U.S. states have either adopted or proposed entity-level taxes based on value added calculated from a taxpayer's accounts. Three EU countries -- France, Hungary, and Italy -- are currently using regional subtraction-method taxes on value added in addition to their national credit-invoice VATs.
Keywords: VAT, European Taxation
JEL Classification: H25, H87
Suggested Citation: Suggested Citation