EU consumers hit with €440 VAT bill for tax competition
As European governments look to cut their business taxes and compete to win global industry, consumers are picking up the bill with more Value Added Tax (VAT) sales tax rises. Many countries are following the UK and Irish lead on cutting corporation taxes, shifting the tax burden onto shoppers and retailers’ margins. The 2013 TMF EU VAT Tracker is now predicting the average weighted EU VAT rate to hit over 21% in 2013 compared to 19% in 2010. This translates into a rise of €440 per annum in the average household consumption bill since 2010.