Denmark's tax system evolved from feudal taxes to Sound Dues in 16th century. Income tax reached 15% of state revenue by 1897, surpassing European competitors. Denmark maintains high tax rates since 1897, ranking among top five European countries
Taxation is compulsory levies imposed by governments worldwide. Taxes are the most important source of government revenue. Direct taxes are based on individual's ability to pay. Indirect taxes are levied on production or consumption. VAT is a type of indirect tax collected through credit method
Public finance manages government revenue, debt, and expenditure. Revenue comes from taxes, investments, and other government sources. Government expenditures include healthcare, infrastructure, and salaries. Budget outlines government spending during fiscal year
GST is a VAT levied on domestic consumption goods and services. Tax is collected by businesses and passed to government. France was first country to implement GST in 1954. About 140 countries have adopted GST in some form
VAT is levied on product costs at each stage, with full burden borne by consumers. Output VAT is charged on sales price, input VAT on purchase cost. Producers can take VAT credit until goods reach end-users
Income taxes comprise 80% of government revenues in at least half of world's countries. Some highly-taxed countries have income taxes exceeding 50%. Tax-free countries typically rely on nationalized oil or tourism industries