scholarly journals Information, Asymmetric Incentives, Or Withholding? Understanding the Self-Enforcement of Value-Added Tax

2019 ◽  
Author(s):  
Mazhar Waseem
Keyword(s):  
Value Added ◽  
The Self ◽  
Value Added Tax ◽  
Self Enforcement

scholarly journals The Role of Withholding in the Self-Enforcement of a Value-Added Tax: Evidence from Pakistan

2020 ◽  
pp. 1-44
Author(s):  
Mazhar Waseem
Keyword(s):  
Value Added ◽  
The Self ◽  
Extensive Margin ◽  
Value Added Tax ◽  
A Value ◽  
Self Enforcement ◽  
Large Response ◽  
Roll Out

I leverage the staggered roll out of VAT in Pakistan to document the role of withholding mechanism in the self-enforcement of a VAT. Focusing on firms already in the tax net, I see how their outcomes respond when the tax is extended upward to intermediates used by them. I find that the upward extension of VAT, which triggers the withholding mechanism, causes an immediate and large (more than 40 log-points) surge in sales reported by firms. The evolution of bunching above the zero-liability point and of input costs reported by firms suggest that this large response is indeed driven by the withholding mechanism. I also explore the role of withholding in the extensive margin compliance choices of firms.

scholarly journals No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax

2015 ◽  
Vol 105 (8) ◽  
pp. 2539-2569 ◽  
Author(s):  
Dina Pomeranz
Keyword(s):  
Value Added ◽  
Third Party ◽  
Randomized Experiments ◽  
Value Added Tax ◽  
Tax Enforcement ◽  
Deterrence Effect ◽  
Self Enforcement ◽  
Additional Monitoring

Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms contributed to widespread VAT adoption worldwide, but there is surprisingly little evidence. This paper analyzes the role of third-party information for VAT enforcement through two randomized experiments among over 400,000 Chilean firms. Announcing additional monitoring has less impact on transactions that are subject to a paper trail, indicating the paper trail's preventive deterrence effect. This leads to strong enforcement spillovers up the VAT chain. These findings confirm that when taking evasion into account, significant differences emerge between otherwise equivalent forms of taxation. (JEL D83, H25, H26, K34, O17)

scholarly journals Aspects of the value added tax within the self assessment system and the extended guarantees for the provision of services in the countries of the European Union

2009 ◽  
Vol 55 (No. 7) ◽  
pp. 335-346
Author(s):  
P. David
Keyword(s):  
European Union ◽  
Member State ◽  
Value Added ◽  
Assessment System ◽  
The Self ◽  
The European Union ◽  
Value Added Tax ◽  
Self Assessment ◽  
Excise Tax ◽  
Provision Of Services

The rules of the European Union suppose the value added tax as the only general excise tax. The need for harmonization of this tax in the existing EU member states is obvious, but the results in this field are not entirely convincing. Also the provision of services is a problematic field among others in the implementation of value added tax. It is essential to examine the issue of the value added tax, in this case, both the possibilities of the use of the self assessment system of the value added tax by the recipient of the service compared to the accounting of service including the value added tax by a provider of this service, even if the provider of service from the EU member state shall have a permanent establishment in other member state of the customer, but this establishment is not involved in the provision of the service, as well as the inclusion of services within the so-called extended guarantee to the taxable or exempt fulfilment, when the subject provides the technical support and the assistance to its customers, such as in the case of failures of agricultural machinery, which the provider had supplied to a subject in other member state. On the basis of empirical research, it is needed to assess the results of the harmonization efforts, to identify and recommend the direction in which the European Union should take in this field. The comparison of the individual European Union countries is important here. Value added tax is, regarding its features, still an unsurpassed excise tax, even if it has some weaknesses. The technique of the selection of this tax enables to discover the paid tax at all stages of treatment and it is very appropriate, due to its features for the use in international trade. It is therefore necessary to ensure the sufficient clarity, lucidity and equal conditions for players from the European Union on the basis of the development and adaptation of the rules of the value added tax set at the European Union level within each European Union country.

Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

2017 ◽  
Vol 8 (1) ◽  
pp. 225
Author(s):  
Teki Shala
Keyword(s):  
Economic Growth ◽  
Descriptive Analysis ◽  
Value Added ◽  
Analytical Techniques ◽  
Value Added Tax ◽  
Statistical Tool ◽  
Revenue Collection ◽  
Strong Positive Relationship ◽  
Level Of Economic Development ◽  
Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

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