Taxes in the EU – in which countries are paying the highest amount of taxes?

Have you ever wondered what are the taxes in the EU, where the Union citizens pay the highest taxes?

Computer graphics of the European Parliament shows trends between 2012 and 2015, which colects statistics tax rates, the type of tax and the income generated from the tax system.

Taxes in the EU

The highest excise tax is paid by citizens of Denmark and the lowest by citizens of Latvia. Depending on the percentage of the gross domestic product (GDP) Denmark is a state, where residents pay the largest amount of taxes – their taxation is 50 percent. It is interesting that Denmark compared to other northern states of the countries, where the ratio between direct and indirect taxes roughly the same, nearly doubles the proportion recorded in indirect taxes (excise duties, taxes on the payroll, VAT and import tax).

Even in comparison with other member states Denmark in the percentage of indirect tax remains at the top, while according to the World Economic Forum Latvia has the lowest indirect taxes and is followed by Bulgaria and Slovakia. Indirect taxes include income tax, capital tax, property tax and income tax. The difference between direct and indirect taxes is the lowest in Sweden, Finland and the Netherlands, in comparison with excise taxes Bulgaria, Estonia and Croatia have much higher income taxes and equity in Bulgaria, Estonia and Croatia.

The Western part of the European Union has higher revenues from indirect taxes, while in the east the situation is contrary. Taxes in the EU are determined based on the interdependence of European economies, which means that the European Union does not control the national tax rules. Taxation of the Union shall be determined on the basis of the single market and the integrity, the decisions regarding taxes in the EU are made on the basis of the consent of all member states so that they represent the interests of all.

Value added tax on most goods (1. 1. 2015)

For additional information and questions about company registration, taxation and business in Slovenia, contact us by e-mail [email protected] or call us by phone 00 386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.