THE ANALYSIS OF THE MODELS OF TEMPORARY VAT RATE INCREASE IN THE SLOVAK REPUBLIC CONDITIONS

The VAT represents currently the basic type of universal indirect tax all over the world and one of the main state budget revenues, as well. A common feature is that most countries apply a base tax rate and a reduced tax rate. For 2013, there is the base tax rate of 20 % and reduced tax rate of 10 % for the condition of the Slovak Republic. The representatives of the coalition parties agreed temporary VAT increase by one percentage point from 19% to 20% on coalition board with effect since 1st January 2011. The increased VAT rate will have been applied until the public finance deficit in Slovakia decrease below 3% of gross domestic product. The target of this paper is to analyze the models of temporary VAT rate increase in the conditions of the Slovak Republic

1. CHARLET, A., OWENS. J. 2010. An International Perspective on VAT. Tax Notes International, Volume 59, Number 12, September 2010, ISSN 0029- 705, p. 943 - 954.

2. Ine Lejeune. The EU VAT Experience: What Are the Lessons? Tax Analysts 2011. 15.09.2013. At http://www.taxanalysts.com/www/freefiles.nsf/Files/LEJEUNE21.pdf/$file/LEJEUNE-21.pdf

3. Life in the EU. Official website of the European Union. 20.09.2010. at http://europa.eu/about-eu/facts-figures/living/index_sk.htm

4. Press Agency of the Slovak Republic. The government approved an increase in VAT to 20 percent. 22.09.2010. At http://ekonomika.sme.sk/c/5560034/vlada-schvalilazvysenie-dph-na-20-percent.html

5. Design House. Furniture and accessories. 1.1.2011 At http://www.designhouse.sk/novaDph

6. Statistical Office of the Slovak Republic. Core and net inflation in 2011 change from previous period in%. 13.1.2012. at http://portal.statistics.sk/showdoc.do?docid=30659

7. The Global Competitiveness Report 2010–2011. World Economic Forum. at http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010- 11.pdf

8. Taxation trends in the European Union Focus on the crisis: The main impacts on EU tax systems. European Commission 2011. At http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_ info / economic_analysis / tax_structures / 2011 / focus_on_the_crisis_en.pdf

9. KARMAŽIN, B. 2011. The impact of the introduction of the euro on the development of consumer prices. Biatec. October 2011. At http://www.nbs.sk/_img/Documents/_PUBLIK_NBS_FSR/Biatec/Rok2011/b iatec0811.pdf

10. KARLUBÍKOVÁ J. Mistakes of Slovak managers. Slovak style of management is too formal and not very customer-oriented. TREND Weekly, 17.04.2009.

11. BENKOVSKIS et al (2011), “Price setting behavior in Latvia: econometric evidence from CPI micro data ”, Working Paper 1/2011, Bank of Latvia.

12. Study to quantify and analyze the VAT gap in the EU-25. DG Taxation and Customs UnionMember States. Report. 21.09.2009. at http://ec.europa.eu/taxation_customs/resources/documents/taxation/tax_coope ration / combating_tax_fraud / reckon_report_sep2009.pdf