VAT Trends in the European Union

The European Commission has published its 2017 report on Taxation Trends in the European Union, which is now available online. The Commission notes that consumption taxes grew slightly as a share of total tax revenue in 2015, and that VAT typically composes between two-thirds and three-quarters of the implicit tax rate on consumption. This figure will likely hold steady in the near future, as Member States have achieved a measure of stability in standard VAT rates; the report notes that only two Member States (Greece and Romania) changed their standard rates in 2017, halting a trend of sharply rising rates across the EU.