【文章內(nèi)容簡介】 nce bear lower costs and the carpenter may be able to avoid other taxes (profit or payroll taxes). The government, however, may still receive VAT for various other inputs(1umber, paint, gasoline, tools, etc.) sold to the carpenter， who would be unable to reclaim the VAT on these inputs (unless of course the carpenter also has at 1east some jobs done with receipt, and claims all purchased inputs to go to those jobs). While the total tax receipts may be lower pared to full pliance, it may not be lower than under other feasible taxation systems.Chapter III VAT systems European Union The European Union Value Added Tax(EU VAT)is a value added tax enpassing member states in the European Union Value Added Tax Area. Joining in this is pulsory for member states of the European Union. As a consumption tax, the EU VAT taxes the consumption of goods and services in the EU VAT area. The EU VAT’s key issue asks where the supply and consumption occurs thereby determining which member state will collect the VAT and which VAT rate will be charged. Each Member State’s national VAT legislation must ply with the provisions 0f EU VAT law as set out in Directive 2021/112/EC. This Directive sets out the basic framework for EU VAT, but does allow Member States some degree of flexibility in implementation of VAT legislation. For example different rates of VAT are allowed in different EU member states. However Directive 2021/112requires Member states to have a minimum standard rate of VAT of 15％ and one or two reduced rates not to be below 5％ . Some Member States have a 0％ VAT rate on certain suppliesthese Member States would have agreed this as part of their EU Accession Treaty(for example, newspapers and certain magazines in Belgium). The current maximum rate in operation in the EU is 25％ , though member states are free to set higher rates. VAT that is charged by a business and paid by its customers is known as ”output VAT” (that is， VAT on its output supplies). VAT that is paid by a business to other businesses on the supplies that it receives is known as ”input VAT”(that is, VAT on its input supplies). A business is generally able to recover input VAT to the extent that the input VAT is attributable to(that is, used to make)its taxable outputs. Input VAT is recovered by setting it against the output VAT for which the business is required to account to the government, or, if there is an excess, by claiming a repayment from the government. The VAT Directive (prior to 1 January 2021 referred to as the Sixth VAT Directive) requires certain goods and services to be exempt from VAT (for example, postal services, medical care, lending, insurance, betting), and certain other goods and services to be exempt from VAT but subject to the ability of an EU member state to opt to charge VAT on those supplies (such as land and certain financial services). Input VAT that is attributable to exempt supplies is not recoverable， although a business Can increase its prices SO the customer effectively bears the cost of the ’sticking’ VAT (the effective rate will be lower than the headline rate and depend on the balance between previously taxed input and labor at the exempt stage). The Nordic countries In Denmark， VAT is generally applied at one rate, and with few exceptions is not split into two or more rates as in other countries (. Germany), where reduced rates apply to essential goods such as foodstuffs． The current standard rate of VAT in Denmark is 25%. That makes Denmark one of the countries with the highest value added tax, alongside Norway and Sweden. A number of services has reduced VAT, for instance public transportation of private persons, health care services, publishing newspapers, rent of premises (the lessor can, though, voluntarily register as VAT payer, except for residential premises), and travel agency operations. In Finland， the standard rate of VAT is 23%, along with all other VAT rates, excluding the zero rate. In addition， two reduced rates ar