Effects of Adopting a Value-added Tax
Author :
Publisher :
Page : 100 pages
File Size : 39,44 MB
Release : 1992
Category : Consumer goods
ISBN :
Author :
Publisher :
Page : 100 pages
File Size : 39,44 MB
Release : 1992
Category : Consumer goods
ISBN :
Author : Estados Unidos. Congreso
Publisher :
Page : 79 pages
File Size : 27,79 MB
Release : 1992
Category :
ISBN :
Author : Mr.Santiago Acosta Ormaechea
Publisher : International Monetary Fund
Page : 38 pages
File Size : 18,57 MB
Release : 2019-05-07
Category : 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.
Author : David R. Agrawal
Publisher :
Page : 0 pages
File Size : 42,92 MB
Release : 2022
Category :
ISBN :
Value-added taxes (VAT) are a common way of raising revenue. While many countries have adopted a VAT in the last 30 years, they often adopt systems that deviate from textbook principles. The net effect on firms is therefore unclear. We construct a dataset of product- and state-specific tax rates before and after India switched from a sales tax to a VAT. Exploiting staggered state-level adoptions, we show that sales increased by 50% in the medium run. Even though India's VAT contained undesirable provisions, the decline in effective tax rates induced by the reform allowed firms to increase earnings and capital.
Author :
Publisher :
Page : 99 pages
File Size : 20,95 MB
Release : 1992
Category : Consumer goods
ISBN :
Author : Ben Lockwood
Publisher : International Monetary Fund
Page : 42 pages
File Size : 12,76 MB
Release : 2007-07
Category : Business & Economics
ISBN :
Has the VAT proved, as its proponents claim, an especially effective form of taxation? To address this, this paper first shows that a tax innovation-such as the introduction of a VAT- reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This leads to the estimation, on a large panel, of a system of equations describing the probability of VAT adoption and the revenue impact of the VAT. The sign of the revenue impact is generally ambiguous, but most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so.
Author :
Publisher :
Page : 349 pages
File Size : 11,34 MB
Release : 2011
Category : Sales tax
ISBN : 9780918255181
Author : Mario Pessoa
Publisher : International Monetary Fund
Page : 29 pages
File Size : 37,21 MB
Release : 2021-05-10
Category : Business & Economics
ISBN : 1513577042
The value-added tax (VAT) has the potential to generate significant government revenue. Despite its intrinsic self-enforcement capacity, many tax administrations find it challenging to refund excess input credits, which is critical to a well-functioning VAT system. Improperly functioning VAT refund practices can have profound implications for fiscal policy and management, including inaccurate deficit measurement, spending overruns, poor budget credibility, impaired treasury operations, and arrears accumulation.This note addresses the following issues: (1) What are VAT refunds and why should they be managed properly? (2) What practices should be put in place (in tax policy, tax administration, budget and treasury management, debt, and fiscal statistics) to help manage key aspects of VAT refunds? For a refund mechanism to be credible, the tax administration must ensure that it is equipped with the strategies, processes, and abilities needed to identify VAT refund fraud. It must also be prepared to act quickly to combat such fraud/schemes.
Author : James M. Bickley
Publisher :
Page : 32 pages
File Size : 19,77 MB
Release : 1988
Category : Small business
ISBN :
Author :
Publisher :
Page : 116 pages
File Size : 41,46 MB
Release : 2017
Category :
ISBN : 9789264295490
Value Added Tax (VAT; also known as Goods and Services Tax, under the acronym GST in a number of OECD countries) has become a major source of revenue for governments around the world. Some 165 countries operated a VAT at the time of the completion of the International VAT/GST Guidelines in 2016, more than twice as many as 25 years before. As VAT continued to spread across the world, international trade in goods and services has also expanded rapidly in an increasingly globalised economy. One consequence of these developments has been the greater interaction between VAT systems, along with growing risks of double taxation and unintended non-taxation in the absence of international VAT co-ordination. The International VAT/GST Guidelines now present a set of internationally agreed standards and recommended approaches to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade. They focus in particular on trade in services and intangibles, which poses increasingly important challenges for the design and operation of VAT systems worldwide. They notably include the recommended principles and mechanisms to address the challenges for the collection of VAT on cross-border sales of digital products that had been identified in the context of the OECD/G20 Project on Base and Erosion and Profit Shifting (the BEPS Project). These Guidelines were adopted as a Recommendation by the Council of the OECD in September 2016.