How Standard VAT is Influencing Economic Growth? An Analysis at European Union Level.

The article is structured in 3 main chapters. It begins with a brief introduction explaining the theoretical link between the two target indicators: value added tax and economic growth. The first two chapters have in the foreground the value added tax, in which are presented the main characteristics, the VAT rates applied in each Member State, but also the evolution of the revenues generated as a percentage of GDP and as a percentage of total tax revenues collected. Last but not least, we discuss the process of harmonizing value added tax at European Union level. In the last chapter, the link between the revenues collected from VAT and the level of GDP is presented through an econometric model. The article ends with a summary of the conclusions drawn from the study. [ABSTRACT FROM AUTHOR]