THE VAT IN THE BANK SYSTEMDownload This Article
The bank system in the European Union plays an important role as a significant sector of the economy. Implementing in the last century -VAT exemption also for services performed by banks generates extra tax inflows, but decreases international competitiveness of this sector. However, VAT is a perfect consumption tax, alternatives were created for banks’ services taxation. As the paper shows, many of them are used in other then EU countries and provide smaller distortions in taxation. The aim of this article is to shortly present the dominant model of VAT taxation in the EU with a particular reference to banks’ services and describe an alternative method of taxating them. The analysis will also refer to introducing a new Financial Transaction Tax since 2014.
Keywords: VAT, Bank System, Taxation, Financial Transaction Tax
How to cite this paper: Biernacki, K. (2013). The VAT in the bank system. Journal of Governance and Regulation, 2(3), 14-18. https://doi.org/10.22495/jgr_v2_i3_p2