[Title Page]
Contents
I. Introduction 9
II. Current State of Korea's VAT Systemrt 12
1. Summary 12
2. Tax Exemption and Zero Tax Rate 14
A. Tax Exemption 14
B. Zero Tax Rate 20
3. Changes in VAT Revenue and VAT Revenue Ratio(VRR) 25
III. VAT Reform in Selected Countries 35
1. The VAT System in OECD Countries 35
A. Current Standard VAT Rate 35
B. Adjustment of VAT Rates before and after the Financial Crisis 40
C. Comparing Ranges of VAT Exemptions and Zero Tax Rates 42
2. Amendment of the VAT System in Selected Countries 49
A. Germany 49
B. Switzerland 51
C. Spain 53
D. Japan 54
E. Summary and Implication 57
IV. Conclusion 59
References 62
[Table II-1] Tax Exemption According to Value-Added Tax Act 17
[Table II-2] Tax Exemption According to the Restriction of Special Taxation Act 19
[Table II-3] Difference between VAT Exemption and the Zero-Rate VAT 22
[Table II-5] Yearly Changes in Tax Revenue of Each Tax Item 25
[Table II-6] Changes in VAT Revenue 27
[Table II-7] Changes in VRR 30
[Table II-8] Changes in VRR: Based on OECD Members 32
[Table III-1] Changes in Standard VAT Rate: Based on OECD Members 37
[Table III-2] Comparison of VAT Rates before and after Financial Crisis: Based... 40
[Table III-3] Comparison of Common Exemption Range of the OECD and Korea 43
[Table III-4] Comparison of VAT Exemption System: Based on OECD Members 44
[Table III-5] Adjustment of VAT rates in Spain 53
[Table III-6] Progress of Consumption Tax Act in Japan 55
[Table III-7] Consumption Tax Rate Hike and Prospect of Government Spending... 56
[Figure II-1] Example of VAT When the VAT Rate is 10 Percent 13
[Figure II-2] VAT Exemption That Occurs Right before the Final Consumption 15
[Figure II-3] VAT Exemption That Occurs in the Middle Stage 16
[Figure II-4] The Zero-Rate VAT 21
[Figure II-4] Major Special Taxation Schemes Related to VAT 23
[Figure II-5] Changes in VRR and Major Events 31
[Figure II-6] Standard Rates and VRRs: OECD Countries 34
[Figure III-1] Standard VAT Rates in 2008: Based on OECD Members 41
[Figure III-2] Standard VAT Rates in 2013: Based on OECD Members 42