English to Croatian Other Finance (general)

Evo konteksta

However, the national VAT base to which the uniform rate is applied must not exceed 50% of the GNI of the Member State. This is known as “capping”. The capping of VAT bases was introduced in order to eliminate the discrepancies between Member States in the ratio between their VAT base and their GNI, with a view to sharing the impact of the VAT-based own resource more fairly among Member States, taking account of their capacity to pay. If the bases remained uncapped, this resource was considered to have the character of a regressive tax on poorer Member States.

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