The latest TMF EU VAT Tracker highlights the impact of the credit crunch and increasing inflationary worries on plans for VAT rate increases. In a bid to stay competitive for global business investment, EU states have been looking in recent years to shift the burden of tax from business-related taxes (e.g. corporate and labour taxes) to consumption taxes, such as VAT. The most dramatic example of this was Germany's 2007 3% VAT increase to 19%.