EuroEconomica, Vol 37, No 1 (2018)

Abstract

The paper tries to analyze the effect of the change of tax rates for VAT for certain categories of goods in budget revenues and economic development of Kosovo. VAT in Kosovo is applied since 2001 and is indirect tax on consumption that brings the main revenue to the state budget. Therefore, the research focuses on whether the changes made to the VAT rates in September 2015 have had its increasing effects or decreases in some products' prices, increasing or decreasing their budgets and with this impact on development economic indicators expressed through the GDP. Through the econometric model and regression analysis for the period 2013-2016, is evaluate the impact of VAT on economic growth and development.