Competition and Welfare Effects of VAT Exemptions

Dietl, Helmut; Jaag, Christian; Lang, Markus; Trinkner, Urs

doi:10.2202/1935-1682.2855

Cited by 6 publications

(4 citation statements)

References 11 publications

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“…It is most logical in this situation to assume that it will be created by state structures or private enterprises according to a state order. For example, in Singapore all trade-related official systems (including e-invoicing) is made by enterprises, the largest share in which is state-owned, and under a supervision of ISSN 2412-8872 Singapore Customs and Excise Department and Economic Development Board 7 .…”

Section: Vat and Digital Technologies Today And In The Near Futurementioning

confidence: 99%

“…This is a positive side. 7 But at the current stage of ICTs' development there is no 100% guarantee that information from e-invoicing will not get to the attackers. If such information contains, for example, products supplied to national defence structures, etc., it may threaten the national security of the country.…”

Section: Vat and Digital Technologies Today And In The Near Futurementioning

confidence: 99%

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Prospects of VAT Administration Improvement in Digitalized World: Analytical Review

Garkushenko¹

2022

JTR

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In conditions of integral digitalization, governments may face a shortfall in VAT revenues due to tax avoidance and frauds. Here arise two opposite hypotheses: 1) digital technologies can solve problems with VAT; 2) digital technologies are not capable to do so. The purpose of the study is to conduct an analytical review of the main problems and ways to improve the administration of VAT in the context of the digitalization of the economy. To achieve this, literature on digital technologies in VAT administration was analyzed. The literature sample consists of 25 sources on e-invoicing and 27 sources on blockchain in VAT administration. The main criteria for literature selection are: accessibility and significance of source; time horizon (last 10–15 years); keywords (“e-invoicing”, “blockchain”, “VAT”, “taxation”, “tax administration”); interdisciplinary approach (literature set represent standpoints of experts from different fields). It was established, that there is no consensus about e-invoicing and blockchain in VAT administration. These technologies have both shortcomings and advantages. The main result of the review is this: digital technologies are not a panacea for solving all problems with VAT administration. That is, both hypothesis of this paper is not proved, but not refuted. Digital technologies can simplify and reduce costs on VAT administration, provided there is a developed ICT infrastructure and consistent regulatory framework, a high tax culture, a low level of “shadow” economy. Interaction between countries in terms of the tax information exchange is also crucial. If these conditions are met, digital technologies in taxation can be effectively employed in the next 5–10 years in the most advanced countries; less developed countries will need much more time for this.

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Section: Vat and Digital Technologies Today And In The Near Futurementioning

confidence: 99%

Section: Vat and Digital Technologies Today And In The Near Futurementioning

confidence: 99%

Prospects of VAT Administration Improvement in Digitalized World: Analytical Review

Garkushenko¹

2022

JTR

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“…As a result, concerns such as the multiplicity of VAT rates and the exemption of certain products and services could not be completely eliminated even in the revised version of the VAT and SD Act, 2012. Furthermore, within the VAT system, it must be realized that cascading effects may arise when an intermediate business is tax-exempted in the supply or distribution chain (Bye et al, 2012;Dietl et al, 2011). Since 2012, although the GoB was apprehensive about the consequences of the implementation of a uniform VAT rate for the economy and delayed the process to avoid contention with various interest groups, it continued to make an effort to gradually implement the new VAT and SD Act phase by phase.…”

Section: Rationale Of the Studymentioning

confidence: 99%

The Value-Added Tax (VAT) Improvement Program: Raising the operational efficacy of the VAT administration in Bangladesh

Bari¹,

Khan²,

Ullah³

2022

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Bangladesh has a weak and inequitable tax system. Over the past 15 years, the government of Bangladesh (GoB) has relied on the regressive value-added tax (VAT) for more than a third of all revenues, with little progress towards strengthening direct taxation of high net-worth individuals and large corporations. From 2015–2021, the World Bank’s VAT Improvement Program (VIP) assisted the Bangladesh National Board of Revenue in improving VAT administration. VIP helped speed up automation and increase revenues. But the program did not include any objectives to improve VAT equity and fairness, and it also fell short on improving transparency and taxpayer satisfaction. To address VAT’s regressive nature and its impact on low income households, the GoB needs to improve coverage of social protection programmes. Bangladesh and its external partners should focus on strengthening progressive direct taxation. Meanwhile, the government must end gender-blind VAT administration and recognize that VAT negatively affects low income female entrepreneurs and consumers.

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“…However, in terms of tax collection by individual states, it is desirable that taxation prevails in the country where the goods or services are consumed (Keen and Smith, 2007). Individual Member States set VAT rates as efficiently as possible in their tax policies (Kowal and Przekota, 2021) and want to avoid distortion of competition (Dietl et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

New VAT Rules for E-commerce: What Will They Bring to Public Budgets?

Kebrtová¹,

Zídková²

2022

EFAJ

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The article focuses on the new rules for electronic commerce that came into force on 1 July 2021 in all EU Member States. The main goal is to explain these new rules of taxation of consignments of goods from abroad (both from the European Union and third countries) to non-taxable persons and subsequently to calculate the impact of these new rules on the tax revenues of public budgets of the Czech Republic. The assumption set in advance is that the changes in tax legislation will result in an increase in the Czech public budget revenues due to the boosted revenues from valueadded tax collected on foreign shipments. Year-on-year, tax revenues from online purchases will undoubtedly increase also due to the growing popularity of online shopping, currently sustained by the ongoing pandemic situation of covid-19. The calculations of the additional value-added tax revenue are based mainly on the data sourced from the Czech Statistical Office and a study carried out for the European Commission. The additional value-added tax revenue is calculated using the three model situations that assess impacts on the tax revenue of public budgets in the Czech Republic. For 2019, these impacts were estimated at between CZK 3.1 and CZK 6.1 billion.

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Competition and Welfare Effects of VAT Exemptions

Cited by 6 publications

References 11 publications

Prospects of VAT Administration Improvement in Digitalized World: Analytical Review

Prospects of VAT Administration Improvement in Digitalized World: Analytical Review

The Value-Added Tax (VAT) Improvement Program: Raising the operational efficacy of the VAT administration in Bangladesh

New VAT Rules for E-commerce: What Will They Bring to Public Budgets?

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