THE IMPACT OF COVID-19 ON VAT TAX RATES IN EUROPEAN UNION COUNTRIES. EVIDENCE FROM BULGARIA
THE IMPACT OF COVID-19 ON VAT TAX RATES IN EUROPEAN UNION COUNTRIES. EVIDENCE FROM BULGARIA

Summary/Abstract: This article aims to point out the changes in the tax rates of the European Union countries affected by the coronavirus crisis. The period during which the analysis is carried out is March 2020 - December 2020. Each of the 28 Member States is examined separately and changes in the VAT tax rate are identified in individual industries. Based on the collected data and their analysis for the specific period, it is noticed that the countries try to support the most affected economic sectors from the crisis on the one hand, and on the other hand to keep their economic stability within relatively good limits. VAT is a multi-stage tax, the collection of which is a major revenue item in the budget of each Member State of the European Union. Any change in its regulatory nature or tax rate reflects on the methods of taxation, respectively its collection and financial effect on the budget. However, the crisis with the coronavirus and the lockdown of shops, restaurants, hotels and other sources of income has necessitated easing the tax burden on taxpayers in all countries of the European Union. The relief is a reduction in the tax rate for certain products and economic activities.

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