Within Europe differentiated rates structures date back to the introduction of VAT itself. Evidence as regards the negative consequences of applying multiple rates has been apparent for some decades. Since the late 1980s, therefore, there have been several attempts to amend European rates...

We study the effects of consumption tax changes on prices and unit sales of durables utilizing micro-level product data. The results show that tax rate changes are fully shifted into prices. An anticipated tax rate change causes a temporary shift in unit sales shortly before implementation,...

In this article, the author describes the differences between the Member States as regards the VAT regimes currently applicable to financial services and the existing problem that financial institutions, in particular businesses in the banking sector, cannot recover input VAT. In addition, he...