Exploring the Origins and Global Rise of Vat

James, Kathryn

doi:10.2139/ssrn.2291281

Cited by 8 publications

(11 citation statements)

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“…In 1954, that was built into a tax system and implemented at the national level in France (Charlet and Owens, 2010). The original tax base of VAT in France was limited, and later was expanded to a full VAT, including the retail sector in 1968 (James, 2011). In 1967, the first comprehensive VAT in Europe was adopted in Denmark (James, 2011.…”

Section: Origins and Development Of Value-added Taxmentioning

confidence: 99%

“…Additionally, in 1967, the European Economic Community (EEC, succeed by the European Union, EU) set VAT adoption as a mandatory condition for existing members and a prerequisite for new entrants to EEC or EU (Krever, 2008). By the late 1960s, the expansion of VAT was still limited to less than ten countries, but proposed EEC Directives for a harmonised VAT led to the rise of VAT in western Europe (James, 2011).…”

Section: Origins and Development Of Value-added Taxmentioning

confidence: 99%

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Business tax to value-added tax reform in China

Wang

Singh-Ladhar

Davey

2019

PAR

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Purpose This paper aims to examine the indirect tax reform process in China. Specifically, it examines the reform of business tax to value-added tax. Inefficiencies within the new tax system are identified and discussed. The “business tax to value-added tax” reform was seen as an essential element in promoting the economic transition and stimulating the service industries (Jin and Jin, 2013). Design/methodology/approach The paper uses archival and current literature. In undertaking the study, the different periods of indirect tax are examined, prior to 1994, 1994-2012, the changes from 2012 culminating in the new 2017 regime. Attributes of “good” value-added tax (VAT) systems are covered as well as a comparison with New Zealand’s goods and services tax (GST). Findings The paper finds that to align with the international trend of indirect tax development and more efficiently accomplish the economic transition China needs to build a more neutral VAT system with fewer reduced rates and exemptions and the tax system have created tax inefficiencies and increased the compliance cost. VAT is imposing an increasingly significant impact on China’s national economy and industrial structure as well as accountants. Originality/value This is the first study that analyses the indirect tax reforms that are currently being implemented in China and as such has lessons for China but also for VAT/GST in general. We should not forget how special New Zealand’s GST is and the clarity of focus of those who implemented it!

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Section: Origins and Development Of Value-added Taxmentioning

confidence: 99%

Section: Origins and Development Of Value-added Taxmentioning

confidence: 99%

Business tax to value-added tax reform in China

Wang

Singh-Ladhar

Davey

2019

PAR

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“…In practice, VAT turned out to be the most important form of indirect taxation-and VAT reform got a never ending policy debate worldwide. A history of the VAT is provided, e.g., in James (2011). The probably first documented demand for a modern VAT was provided by Wilhelm von Siemens at the beginning of the German Weimar Republic in 1919 (Ito 1954).…”

Section: Theoretical Background and Historical Retrospectionmentioning

confidence: 99%

“…Similar reforms toward net VAT arose in Latin America in the 1970s and in other developed economies such as Australia, Canada, Japan, and Switzerland in the 1980s. Many transitional and developing countries in Asia and Africa followed afterward (James 2011). An important recent instance is China, that launched a VAT reform in 2009, where in mainland China the gross VAT was substituted by a net VAT (Lu and Chen 2008).…”

Section: Theoretical Background and Historical Retrospectionmentioning

confidence: 99%

A General Microsimulation Model for the EU VAT with a specific Application to Germany

Siemers

2013

IJM

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The major sales tax in the EU-and in several other countries-is practiced as value-added tax of the consumption type with invoice method. Literature on microsimulation models (MSM) for VAT is rare, though the importance of VAT has continuously increased. We discuss the issues of VAT-MSM in detail and develop a basic general VAT-MSM, applicable to the EU member states (and beyond). To illustrate the functioning of the general model, we apply it in detail to the specific case of Germany. We provide comprehensive estimation results for the distributional and fiscal effects of the German VAT. Finally, we simulate the effects of a small VAT reform, comparing static and behavioral response simulations.

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“…These tax relief measures formed the basis of the European Union VAT model, which was adopted from the Sixth Council Directive (De la Feria & Krever, 2012). In 1984, New Zealand introduced a new model VAT, which is referred to as a modern VAT (James, 2011). According to Van Oordt (2015, p. 34), this type of VAT addressed most of the shortcomings of the EU model VAT and it is currently regarded as the model of choice for a VAT.…”

mentioning

confidence: 99%

A diagnosis of the deficiencies in the Zimbabwean value added tax system

Madzivanyika

2017

Public and Municipal Finance

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The paper analyzes the Zimbabwean VAT system. The main objective was to establish and evaluate the gaps within the Zimbabwean VAT system, with the view of closing them so that the Zimbabwean VAT is attuned to the dictates of the best practice VAT. A review of literature was used and the main sources of information were the Zimbabwe Revenue Authority, the South African Revenue Services, literature from various journal articles and books and various reports and legislative instruments. The key finding of the study was that the Zimbabwean VAT system falls short of both the South African and best practice VATs. The main reasons for the gap are; a narrow VAT base fuelled by rampant VAT zero-rates and exemptions; it defies the destination principle; it does not conform to the principle of tax neutrality and tax simplicity; and it has high costs of collection and compliance. The study recommends that the Zimbabwean VAT system should be aligned to the best practice VAT through streamlining VAT privileges and correctly implementing the destination principle. Adequate funding should be allocated to the Zimbabwe Revenue Authority in order to embrace the Information Communication Technology (ICT) drive to reduce costs of compliance and collection.

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Exploring the Origins and Global Rise of Vat

Cited by 8 publications

References 0 publications

Business tax to value-added tax reform in China

Business tax to value-added tax reform in China

A General Microsimulation Model for the EU VAT with a specific Application to Germany

A diagnosis of the deficiencies in the Zimbabwean value added tax system

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