In what concerns the VAT increase in Romania, from 19 to 24%, the South-Eastern European state now leaves the club of the countries with VAT below the European average and joins the club of the highest VAT, according to a European Commission report on taxation among EU member states + Norway. Moreover, the document goes to show that only Greece and Cyprus increased the VAT by 5% from 2000 up until 2010, but none of them so abruptly between 2009 and 2010. The 5% increase in VAT will take the tax from 19% to 24% on July 1.
The report addresses the 19% VAT in Romania, but the comparison is pretty obvious if one considers the jump to 24%. The European average VAT is 20%. The only states with a VAT higher than 24% are Denmark, Hungary and Sweden.
During the last year, the VAT rose by 1% in The Czech Republic and Finland, by 2% in Lithuania and Spain, by 4% in Greece and dropped 0.5% in Ireland.
Between 2009 and 2010, no country increased the VAT by 5%, not even Greece, which put the VAT up first from 18 to 19% (2008-2009) and later to 23% (2009-2010).