In July 2020, the UK government reduced the VAT rate on hospitality services from 20% to 5% as an emergency policy intervention. Using a novel dataset of detailed hotel room characteristics in UK and elsewhere, we estimate how much the tax cut was passed on to consumers via a price reduction. We...

As countries worldwide endeavor to fulfill the United Nations Sustainable Development Goal (SDG) 10, which emphasizes reducing inequality, there is a growing imperative to utilize tax policy and institutions to accomplish this objective. Hence, this study is inspired by this rationale. The aim...

The conventional wisdom is that a big jurisdiction sets a higher tax rate than a small jurisdiction. We show this result arises due to simplifying assumptions that imply tax-base sensitivities are equal across jurisdictions. When more than two jurisdictions compete in commodity taxes, tax-base...

This article conducts a comprehensive bibliometric analysis of 182 papers to trace the progression of research on cryptocurrency taxation. The study highlights prevailing patterns, influential contributors, and collaborative networks by utilising data from Scopus and the Web of Science Core...

This note presents the results of the analysis of Value Added Tax (VAT) and Corporate Income Tax (CIT) compliance and policy gap estimates in Indonesia between 2016 and 2021. The study's objective is to quantify the magnitude of the tax gaps and to identify drivers behind the low efficiency of...

Improving domestic revenue mobilization extremely important for Zimbabwe to create the fiscal space to absorb quasi-fiscal expenditures and support macroeconomic stability. In November 2023, Zimbabwe announced measures to raise additional tax revenue. This included limiting value-added tax (VAT)...

Chinesische Onlineplattformen wie AliExpress, Shein und Temu versenden einen Großteil ihrer Waren als Einzelsendungen per Luftfracht direkt aus China an europäische Kundinnen und Kunden. Dies hat zu einem starken Anstieg der grenzüberschreitenden ECommerce-Pakete nach Europa geführt, die von...

The objective of this study is to analyse the correlation between different types of taxation, price, usage, Human-Development-Index (HDI), affordability, and Gross-Domestic-Product(GDP) per capita. In particular, this work hypothesizes that there is a positive relationship between tobacco taxes...

Late or unreliable refunds of credits undermine the best traits of value-added tax (VAT) systems and might affect firms' growth and investment opportunities. This paper uses administrative tax records in Honduras to study a tax reform that decreased the withholding rate of value-added tax...

The special scheme for small enterprises ('SME scheme') allows small enterprises to sell goods and services to their customers without charging VAT (VAT exemption) and to get some simplifications regarding their compliance and invoicing obligations. This scheme is optional, so small enterprises...

From 1 January 2025, EU small businesses can use the VAT exemption in Member States where they are not established. They can do this through a single registration in the Member State of establishment, allowing them to fully benefit from the EU internal market.

Missing trader intra-Community (MTIC) fraud is a prominent form of VAT non-compliance, which involves a fraudulent trader supplying goods and services to other businesses, collecting the tax due on the supply, and then disappearing without remitting it to the tax authorities. This type of fraud...

A specific form of VAT non-compliance in the EU that warrants particular attention is missing trader fraud. This scheme involves a fraudulent trader supplying goods and services to other businesses, collecting the tax due on the supply, and then disappearing without remitting it to the tax...

The VAT compliance gap measures the difference between the VAT revenue that would be collected in the case of full compliance and the actual revenue collected. The actionable VAT policy gap measures the VAT revenue foregone due to those reduced VAT rates and exemptions which could, in principle,...

Value Added Tax (VAT) in the European Union (EU) is a broad-based tax levied on goods and services used or consumed in the territory of the EU. It serves as one of the core revenue sources for the general government of EU Member States. In 2023, the VAT revenue-to-GDP ratio amounted to 7.2% of...

Purpose: This study aims to propose a potential tax model for taxing e-commerce transactions in Malaysia. Design/methodology/approach: A qualitative approach was employed in this study to unravel methods for taxing e-commerce transactions in Malaysia by interviewing key policymakers, tax...

We propose a new data resource that attempts to overcome limitations of standard firm-level datasets for the UK (like the ARD/ABS) by building on administrative data covering the population of UK firms with at least one employee. We also construct a similar dataset for France and use both...

Low-income countries face the combined challenges of climate shocks and limited domestic revenue mobilization, yet these issues are rarely studied together. This paper provides new evidence on the impact of climate shocks on firm performance and tax revenue in a lowincome country context, using...

Missing Trader Intra-Community fraud (MTIC fraud) is a type of VAT fraud under which a fraudulent trader supplies goods and services to other businesses, collects the tax due on the supply from their customers, and disappears without ever remitting it to the tax authorities. This phenomenon...

This report gives a high-level overview of tax policy across the period 2010 to 2024. An appendix summarises the main tax policy changes. There are some clear distinctions between the governments before 2019 (including the coalition government of 2010-15) and the governments from 2019. Most...

Missing Trader Intra-Community fraud (MTIC fraud) is a type of VAT fraud under which a fraudulent trader supplies goods and services to other businesses, collects the tax due on the supply from their customers, and disappears without ever remitting it to the tax authorities. This phenomenon...

Sales tax is generally not included in the advertised price quoted to consumers in the United States. In contrast, value added taxes (VAT) are embedded into the price in most other countries. This article investigates how the two different pricing structures and consumers' decision-making...

Chinesische Onlineplattformen wie AliExpress, Shein und Temu versenden einen Großteil ihrer Waren als Einzelsendungen per Luftfracht direkt aus China an europäische Kundinnen und Kunden. Dies hat zu einem starken Anstieg der grenzüberschreitenden ECommerce-Pakete nach Europa geführt, die von...

We use novel transaction-level card expenditure data to estimate the effect of the temporary value-added tax (VAT) cut in Germany 2020. We find that the annualized growth rate of expenditures for durables increased by 6 percentage points (pp) during the tax cut, with a particularly strong...

Based on the export VAT rebate rate data from 2004 to 2015, this paper measures the uncertainty of Chinese export VAT rebate policy by using unexpected fluctuation of export VAT rebate rate, and finds that the index varies across products, years and industries. Then, the paper studies the...

At the request of the Directorate of Taxes and Customs, a technical assistance mission evaluated how the authorities launched the Value Added Tax (VAT), administered the tax in the first 12-months of operation, and provided advice on improving the efficiency of the administration of VAT....

This paper presents a novel approach to addressing VAT regressivity, by proposing the adoption of a progressive VAT: a single-rate, broad-base, VAT, whereby tax paid on consumption is re-paid to lower income households in real-time, at the moment of purchase. Such a system can effectively...

This paper studies the effect of the VAT threshold on firm growth in the UK, using exogenous variation over time in the threshold, combined with turnover bin fixed effects, for identification. We find robust evidence that annual growth in turnover slows by about 1 percentage point when firm...