A comparative analysis of value added tax in terms of tangible and intangible tax law: Selected country examples

Value added tax is a type of indirect tax that is levied at every stage in the production-consumption chain. It is managed in a different way with its theoretical and technical advantages, and in this context, it is considered as superior and preferred over other expenditure taxes. Nowadays, value added tax is included in the tax system of many countries and it is seen as a common transaction tax by the countries applying this tax. In the study, primarily, expenditure taxes and value added tax as a transaction tax are explained in terms of tax theory. Then, detailed information is given about the structural features of the value added tax, which is applied in countries with certain features, in the procedural rules. In addition, due to the fact that France, Germany, Denmark, Spain, Greece and Croatia are members of the European Union, apart from Turkey, among selected countries, the issue of value added tax and the harmonization process in indirect taxes in the European Union are also treated. Finally, within the limits determined by the tax technique, firstly the European Union budget and its financing were mentioned, and then the value added tax-based own resources that provided a part of the financing of the European Union budget of the selected countries within the period of 2000-2020 were presented. The maximum contribution that Turkey will make in terms of value added tax within the determined time frame in case of European Union membership has also been measured. Moreover, the performance efficiency of the value added tax revenue obtained in the tax systems of our countries, which are the actors of the study, was analyzed. With the method of objective measurement of the findings and data, country scores were obtained in terms of performance efficiency of value added tax revenue and the efficiency of value added tax systems of selected countries were given comparatively. In the light of the statistical data in question, as a suggestion, the necessity of reforming the value added tax systems by taking measures to restrict tax expenditures in terms of value added tax for countries with relatively low level of efficiency among selected countries was emphasized.