Büttner, Thiess; Madzharova, Boryana; Zaddach, … - 2019
. Our results point at significant effects of the tax deduction. In particular, we find some evidence that taxable sales … relative to input VAT increase. This indicates that the increase in sales is not simply a demand effect from subsidized … services. Rather, firms seem to respond at the formal-informal margin and a larger fraction of sales is carried out formally …