<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The Czech Republic is a typical representative EU Member State which has several times changed VAT rates during the analyzed period 2007–2014 in an effort to consolidate the public budget. These changes are reflected in household spending, which were analyzed by means of the consumer basket, the composition of which is also undergoing changes. Another factor that has an impact on household expenditures is the transfer of commodities between the reduced and standard rate of VAT. The final factor used is the differentiation of households according to their income levels. The aim of this paper is to determine how these changes took effect in the Czech Republic in the share of consumption of commodities included in the standard and reduced VAT rates and in exempt transactions according to household income groups in the analyzed period 2007–2014 and to determine the impact of these changes on the tax burden on selected households by value added tax and confirmation of the assumption of VAT regressivity.</p></abstract>

The Czech Republic is a typical representative EU Member State which has several times changed VAT rates during the analyzed period 2007–2014 in an effort to consolidate the public budget. These changes are reflected in household spending, which were analyzed by means of the consumer basket, the composition of which is also undergoing changes. Another factor that has an impact on household expenditures is the transfer of commodities between the reduced and standard rate of VAT. The final factor used is the differentiation of households according to their income levels. The aim of this paper is to determine how these changes took effect in the Czech Republic in the share of consumption of commodities included in the standard and reduced VAT rates and in exempt transactions according to household income groups in the analyzed period 2007–2014 and to determine the impact of these changes on the tax burden on selected households by value added tax and confirmation of the assumption of VAT regressivity.

Changes in the VAT Burden on Expenses of Selected Households in the Czech Republic (2007–2014)

VŠB – Technical University of Ostrava, Faculty of Economimcs, Sokolská tř. 33, 701 21 Ostrava, Czech Republic.

DANUBE

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

The Czech Republic is a typical representative EU Member State which has several times changed VAT rates during the analyzed period 2007–2014 in an effort to...

Changes in the VAT Burden on Expenses of Selected Households in the Czech Republic (2007–2014)

Published Online: Oct 20, 2015

Page range: 189 - 202

DOI: https://doi.org/10.1515/danb-2015-0012

Keywords
VAT Rates, Household Expenditures, Tax Burden, VAT Regressivity

© 2015 Regína Střílková et al., published by De Gruyter Open

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

Changes in the VAT Burden on Expenses of Selected Households in the Czech Republic (2007–2014)

Published Online: Oct 20, 2015

Page range: 189 - 202

DOI: https://doi.org/10.1515/danb-2015-0012

KeywordsVAT Rates, Household Expenditures, Tax Burden, VAT Regressivity

© 2015 Regína Střílková et al., published by De Gruyter Open

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

Keywords
VAT Rates, Household Expenditures, Tax Burden, VAT Regressivity