Development of the harmonization of the value added tax in the European Union: the evaluation of economic effectiveness in the context of Lithuania

A value added tax is one of the most successful taxes in the modern tax system as it generates the largest revenue to national budgets in all countries of the world in which this tax is imposed. Although the value added tax has passed a long stage of harmonization, however, in the conditions of the globalization of the world’s economy the application of the value added tax falls behind from the latest economic challenges and demands a new doctrinal-practical justification. The aim of the article is to explore the course of the harmonization of the value added tax in the European Union. Seeking to substantiate the significance of the value added tax to the revenue of a country, the authors of the article provide an econometric model prepared using the statistical method, which reveals the dependence of the value added tax from economic parameters in Lithuania.