Value Added Tax Efficiency in the Western Balkan Countries

Nelly Popova

doi:10.37075/YB.2021.1.10

Authors

Senior Assist. Prof. Dr Nelly Popova Department of Finance, Faculty of Finance and Accounting, UNWE Author

DOI:

https://doi.org/10.37075/YB.2021.1.10

Keywords:

Western Balkans, Consumption taxes, Value added tax, Vat efficiency

H20, H21, H25, H26

Abstract

An important feature of the tax systems of the Western Balkan countries is the large share of consumption taxes in total tax revenue. Despite its relatively short existence, VAT in particular has proven to be an important fiscal tool, due to its many advantages. The aim of the article is to outline the main developments in VAT in these countries in the past two decades and to analyse its efficiency. The main result of the article is that the tax has good overall revenue performance in the Western Balkans, as measured with the C-efficiency ratio.

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