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More than 50 countries worldwide employ a value-added tax. What are its effects on prices, exports, and investment? Is it regressive? These and other questions are answered in this collection of papers presented at a March 1990 Jakarta seminar on the VAT in Asia

This paper examines the impact of Value Added Tax (VAT) on poverty in Sri Lanka, by considering the amount of VAT paid by the household on the consumption of food items. The study based on Household Income and Expenditure Survey (HIES) data of Sri Lanka in 2012/13 and Ordered Probit model was applied for empirical estimation. The results confirm that, despite VAT contributes to national tax revenue significantly, it essentially increases the probability of being extreme poor, poor and vulnerable non-poor by 0.0061%, 0.4942% and 1.4760% respectively, while reducing the probability of being non-poor by 1.9764%. Apart from that, the recent hike in VAT rate of Sri Lanka from 11% to 15% increases probabilities of being extreme poor, poor and vulnerable non-poor by 0.017%, 1.39% and 4.16% respectively, while decreasing the probability of being non-poor by 5.57%. Thus, the study recommends to rationalize and continue VAT exemptions, introduce a twin VAT rate for essential and luxury goods and services along with a gradual shift from indirect to direct taxes in order to lessen VAT burden on lower income groups while ensuring higher tax revenue for the government.

Value added tax (VAT) is indirect sources of revenue collection of nation. It has been the most essential choice like our developing countries, Nepal. Which leads to revenue enhancement and sustainable economic development. As VAT was an emerging concept in Nepal, a comprehensive taxpayer education program was launched to impart knowledge regarding the various aspects of VAT to parliamentarians, industrialists, businessmen, consumers as well related society. The study used descriptive and survey research design. Data were collected through questionnaires. Statistical tools were used to make a proper analysis. It is found that 20% businessmen and 33.33% consumers are not aware that the Government of Nepal is levying VAT on all kind of products, 36% consumers are not aware of the fact that you pay VAT whenever you purchase any product, 88 % of the total respondents knowledge on earning from VAT is a major source of revenue for Government, only 44 % response of respondents are in favor of billing system, 33.33% consumer are not aware about existing rate of VAT in Nepal, 44% consumers specify the other problem in the present VAT implementation except VAT collection ,VAT refund and registration. Most of them ask for tax invoice to get the authenticity of sellers. VAT must be successful and this largely depends upon the public awareness, honesty, faith and morality of tax officials and the business community. There is a need for willpower and action. It is also found that public awareness program and tax education play prime role to increase the VAT revenue in Nepal. The finding of this study is majority of Tax expert and businessmen are aware about VAT system but the training and awareness program is essential.

Kenya has been faced with the need to generate more tax revenue to support its expenditure on public services for both the national and county governments. With the ever-increasing budget deficit and increased borrowing to support itself, the cabinet secretary for treasury came up with drastic measures to increase VAT revenue in 2013. The objective of this study was to examine the effect of the VAT Act amendment 2013 on tax revenue in Kenya. The study used secondary data from the Kenya National Bureau of Statistics for the financial year 2006/7 to 2015/16 which provided sufficient dataset for the event study model of analysis used. The analysis result indicated that VAT revenue and total tax revenue exhibited a continuous growth in the study period. This study found that the amendment of the VAT Act in 2013 led to a general increase in VAT revenue. This was depicted by the sudden increase in domestic VAT revenue after amendment. The revenue growth was highest in the post-amendment period than before the amendment. The growth was more pronounced in the domestic VAT revenue than the import VAT revenue suggesting that consumption was more on the local products than the imports. The government could therefore ride on these findings to tighten any loopholes in the collection of VAT revenue from businesses in Kenya, concentrating more especially on the domestic products which brought in more VAT revenue than the imports.

Value Added Tax (VAT) elasticity and buoyancy calculations can help identify weaknesses in the tax structure and formulate better tax strategies. The concept of tax elasticity and buoyancy also produces estimates of the efficiency of the tax system, namely the ability to be able to mobilize tax revenue with or without changes in tax policy. In calculating tax buoyancy, this research used linear regression and dummy variable method was used to measure tax elasticity. Based on this study, VAT is inelastic but relatively buoyant. The coefficient of elasticity of VAT revenue is less than one. This explains that VAT revenue growth is not responsive to the growth of the tax base.Elastisitas dan bouyansi Pajak Pertambahan Nilai (PPN) dapat membantu mengidentifikasi kelemahan dalam struktur pajak dan merumuskan strategi pajak yang lebih baik. Konsep elastisitas dan daya apung pajak juga menghasilkan perkiraan efisiensi sistem pajak, yaitu kemampuan untuk dapat memobilisasi pendapatan pajak dengan atau tanpa perubahan kebijakan pajak. Dalam menghitung pajak apung, penelitian ini menggunakan regresi linier. dan Metode variabel dummy digunakan untuk mengukur elastisitas pajak. Berdasarkan penelitian ini, PPN tidak elastis tetapi relatif ringan. Koefisien elastisitas pendapatan PPN kurang dari satu. Ini menjelaskan bahwa pertumbuhan pendapatan PPN tidak responsif terhadap pertumbuhan basis pajak

This paper analyses the impact of adopting a value‐added tax (VAT) on the size of the informal sector across different activities. Under VAT, formal traders desire to purchase their inputs from formal suppliers for a deduction in their tax bill. I model this 'self‐enforcement' feature of VAT on an input–output economy and quantify it among different activities using a forward linkage index. The administration can reduce the size of the informal economy by reallocating the audits to activities with higher backward linkages and final consumption. Empirical evidence from the Indian services sector justifies the theoretical results and shows a significant increase in the tax compliance of forwardly linked activities following the VAT adoption in 2003.

1. Shifting to Consumption as a Federal Tax Base: An Overview -- 2. If, When You Say "Value-Added Tax," You Mean... -- 3. Who Bears the Burden of Consumption Taxes? -- 4. Implications of the Form of VAT on Incidence and Other Factors -- 5. Preferential Treatment: The Implications for Horizontal Equity Among Companies -- 6. Problems of Transition to a Value-Added Tax -- 7. International Implications of Value-Added Taxes -- 8. Value-Added Taxation of Financial Services -- 9. The Sectoral Impacts of a Value-Added Tax -- 10. Macroeconomic Effects of a Consumption-Based Tax -- 11. Administration and Compliance -- About the Contributors.

On October 22, 1979, Representative Al Ullman (D-Ore.), then Chairman of the House Ways and Means Committee, introduced the Tax Restructuring Act of 1979, which would have lowered the rates of the individual income, corporate income and social security taxes along with certain other tax benefits and would have replaced the lost revenues from such reductions with the revenues from a 10% value-added tax (VAT). The introduction of the bill followed a speech delivered by Sen. Russell B. Long (D-La.), then Chairman of the Senate Finance Committee, at the 1978 Tulane Tax Institute, in which he advocated an overhaul of the tax system similar to the proposals contained in Ullman's bill. Although there was nothing particularly novel in the proposals of Long and Ullman, the mere fact that the two members of Congress with the most influence over tax legislation were advocating a major overhaul of the entire tax system was enough to spark a lively debate on the merits of substituting a value-added tax for part or all of the components making up the present federal tax system in the United States.

This paper examines the impact of the introduction of the value-added tax on inequality and government revenues using newly released macro data. We present both conventional country fixed effect regressions and instrumental variable analyses, where VAT adoption is instrumented using the previous values of neighbouring countries' VAT systems as an instrument. The results reveal – in contrast to earlier work – that the revenue consequences of the VAT have not been positive. The results indicate that income-based inequality has increased due to the VAT adoption, whereas consumption inequality has remained unaffected. ; peerReviewed

When looking for economic policy instruments in the times of economic crisis, even tax instruments are considered, particularly the changes (increases) of the value added tax rates. Most of the EU member states have two VAT rates, while foodstuff s and non-alcoholic beverages are included under a reduced rate. If increasing the reduced VAT rate, the signifi cance of the foodstuff or non-alcoholic beverages in the consumer basket, the regression of the VAT in these commodities and the signifi cance of the impact on households should be considered. Th is article tries to point out this issue by analyzing the impacts of changes in the VAT rates, or the actual VAT paid by the average households in the Czech Republic in the period from 2005 to 2010. ; Web of Science ; 58 ; 8 ; 395 ; 387

VAT is an indirect tax paid by the subscriber in accordance with the purchase - the sales net. In the European Union the VAT system is strictly regulated, because this tax has a significant influence over the development of the EU's single market and production by ensuring adequate competitiveness. The main document regulating the sale of production, including agricultural and food products, the VAT regime across the EU is 2006, dated 28 November the European Council Directive 2006/112/EB on the common value added tax system. This Directive regulates practically all aspects of the application of VAT. In addition to this threshold, there are still some of the European Council and European Commission directives on the specific application of VAT to the hearings. Lithuania VAT introduced in 1994, at 1 day, entry into force of the Republic of Lithuania Law on value added tax Nr. I - 3455 which operated until 2002 30 June. Since 2002, entered into force on 1 July the new version of the VAT Act. Latest version of the Law 2008 of December 18 and 23 days of the year 2009, June 26 at substantially changed the standard VAT rate and abolished the former VAT exemptions.EU single market, with free movement of goods, the flat agricultural commodity prices, the growing influence of neighbouring countries have a comparative advantage. Realizable at the same price, indirectly, the Polish producers processors a competitive advantage on reduced VAT rates as compared to Lithuania the producers, processors. In addition, the zloty exchange rate fall in a competitive advantage over Lithuanian food products has increased (example: the price 100Lt/kg, Lithuanian producer - processor, realized the product remains 69Lt/kg, while Poland - 100Lt/kg, it is more 45proc). The 5 or 9 per cent rate of VAT is practically the price difference becomes a zloty exchange rate fluctuation. Value added tax increase had a negative impact on Lithuanian and vegetable sector. Trading company, with its significant market power, the VAT increase on to the shoulders ...