The Anatomy of the VAT
Title | The Anatomy of the VAT PDF eBook |
Author | Mr.Michael Keen |
Publisher | International Monetary Fund |
Total Pages | 28 |
Release | 2013-05-16 |
Genre | Business & Economics |
ISBN | 1484307518 |
This paper sets out some tools for understanding the performance of the value added tax (VAT). Applying a decomposition of VAT revenues (as a share of GDP) to the universe of VATs over the last twenty years, it emerges that developments have been driven much less by changes in standard rates than by changes in ‘C-efficiency’ (an indicator of the departure of the VAT from a perfectly enforced tax levied at a uniform rate on all consumption). Decomposing C-efficiency into a ‘policy gap’ (in turn divided into effects of rate differentiation and exemption) and a ‘compliance’ gap (reflecting imperfect implementation), results pieced together for EU members suggest that the former are in almost all cases far larger than the latter, with rate differentiation and exemptions playing roles that differ quite widely across countries.
The Anatomy of the VAT
Title | The Anatomy of the VAT PDF eBook |
Author | Mr.Michael Keen |
Publisher | International Monetary Fund |
Total Pages | 28 |
Release | 2013-05-16 |
Genre | Business & Economics |
ISBN | 1484330587 |
This paper sets out some tools for understanding the performance of the value added tax (VAT). Applying a decomposition of VAT revenues (as a share of GDP) to the universe of VATs over the last twenty years, it emerges that developments have been driven much less by changes in standard rates than by changes in ‘C-efficiency’ (an indicator of the departure of the VAT from a perfectly enforced tax levied at a uniform rate on all consumption). Decomposing C-efficiency into a ‘policy gap’ (in turn divided into effects of rate differentiation and exemption) and a ‘compliance’ gap (reflecting imperfect implementation), results pieced together for EU members suggest that the former are in almost all cases far larger than the latter, with rate differentiation and exemptions playing roles that differ quite widely across countries.
Value Added Tax
Title | Value Added Tax PDF eBook |
Author | Alan Schenk |
Publisher | Cambridge University Press |
Total Pages | 570 |
Release | 2007-01-22 |
Genre | Law |
ISBN | 9780521616560 |
This book integrates legal, economic, and administrative materials about value added tax. Its principal purpose is to provide comprehensive teaching tools - laws, cases, analytical exercises, and questions drawn from the experience of countries and organizations from all areas of the world. It also serves as a resource for tax practitioners and government officials that must grapple with issues under their VAT or their prospective VAT. The comparative presentation of this volume offers an analysis of policy issues relating to tax structure and tax base as well as insights into how cases arising out of VAT disputes have been resolved. The authors have expanded the coverage to include new VAT related developments in Europe, Asia, Africa and Australia. A chapter on financial services has been added as well as an analysis of significant new cases.
The Value Added Tax and Growth: Design Matters
Title | The Value Added Tax and Growth: Design Matters PDF eBook |
Author | Mr.Santiago Acosta Ormaechea |
Publisher | International Monetary Fund |
Total Pages | 38 |
Release | 2019-05-07 |
Genre | Business & Economics |
ISBN | 149831418X |
Does the design of a tax matter for growth? Assembling a novel dataset for 30 OECD countries over the 1970-2016 period, this paper examines whether the value added tax (VAT) may have different effects on long-run growth depending on whether it is raised through the standard rate or through C-efficiency (a measure of the departure of the VAT from a perfectly enforced tax levied at a single rate on all consumption). Our key findings are twofold. First, for a given total tax revenue, a rise in the VAT, financed by a fall in income taxes, promotes growth only when the VAT is raised through C-efficiency. Second, for a given VAT revenue, a rise in Cefficiency, offset by a fall in the standard rate, also promotes growth. The implication is thus that in OECD countries broadening the VAT base through fewer reduced rates and exemptions is more conducive to higher long-run growth than a rise in the standard rate.
The Revenue Administration–Gap Analysis Program
Title | The Revenue Administration–Gap Analysis Program PDF eBook |
Author | Mr.Eric Hutton |
Publisher | International Monetary Fund |
Total Pages | 32 |
Release | 2017-04-07 |
Genre | Business & Economics |
ISBN | 1475583613 |
The IMF Fiscal Affairs Department’s Revenue Administration Gap Analysis Program (RA-GAP) assists revenue administrations from IMF member countries in monitoring taxpayer compliance through tax gap analysis. The RA-GAP methodology for estimating the VAT gap presented in this Technical Note has some distinct advantages over commonly used methodologies. By using a value-added approach to estimating potential VAT revenues, as compared to the more traditional final consumption approach used by most countries undertaking VAT gap estimation, the RA-GAP methodology can provide VAT compliance gap estimates on a sector-by-sector basis, which assists revenue administrations to better target compliance efforts to close the gap. In addition, the RA-GAP methodology uses a unique measurement for actual VAT revenues, which isolates changes in revenue performance that might be due to cash management (e.g., delays in refunds) from those due to actual changes in taxpayer compliance.
Revenue Statistics in Asia and the Pacific 2024 Tax Revenue Buoyancy in Asia
Title | Revenue Statistics in Asia and the Pacific 2024 Tax Revenue Buoyancy in Asia PDF eBook |
Author | OECD |
Publisher | OECD Publishing |
Total Pages | 220 |
Release | 2024-06-25 |
Genre | |
ISBN | 9264684549 |
This annual publication compiles comparable tax revenue statistics for 36 economies. Additionally, it provides information on non-tax revenues for 22 of the 36 economies. This eleventh edition of the report includes a special feature on tax revenue buoyancy in Asia.
The Evolution of Potential VAT Revenues and C-Efficiency in Advanced Economies
Title | The Evolution of Potential VAT Revenues and C-Efficiency in Advanced Economies PDF eBook |
Author | Mr.Junji Ueda |
Publisher | International Monetary Fund |
Total Pages | 38 |
Release | 2017-07-11 |
Genre | Business & Economics |
ISBN | 1484305876 |
To understand the cyclical movements of value-added tax (VAT) revenues in advanced economies, this paper analyzes changes in the C-efficiency ratio by decomposing it into changes in the compliance and policy gaps between 2000 and 2014. The results from a panel of EU member countries and Japan suggest that the cyclicality of C-efficiency is explained by the correlation of both gaps with the output gap. The cyclicality of the compliance gap appears to be short lived, and larger in countries with high compliance gaps. The cyclicality of the policy gaps largely reflects not changes in policy parameters, but rather, behavior-induced changes, notably in government consumption and, to a lesser degree, in the composition of household consumption.