No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax

Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms contributed to widespread VAT adoption worldwide, but there is surprisingly little evidence. This paper analyzes the role of third-party information for VAT enforcement through two randomized experiments among over 400,000 Chilean firms. Announcing additional monitoring has less impact on transactions that are subject to a paper trail, indicating the paper trail's preventive deterrence effect. This leads to strong enforcement spillovers up the VAT chain. These findings confirm that when taking evasion into account, significant differences emerge between otherwise equivalent forms of taxation. (JEL D83, H25, H26, K34, O17)

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The Role of Withholding in the Self-Enforcement of a Value-Added Tax: Evidence from Pakistan

Review of Economics and Statistics ◽

10.1162/rest_a_00959 ◽

2020 ◽

pp. 1-44

Author(s):

Mazhar Waseem

Keyword(s):

Value Added ◽

The Self ◽

Extensive Margin ◽

Value Added Tax ◽

A Value ◽

Self Enforcement ◽

Large Response ◽

Roll Out

I leverage the staggered roll out of VAT in Pakistan to document the role of withholding mechanism in the self-enforcement of a VAT. Focusing on firms already in the tax net, I see how their outcomes respond when the tax is extended upward to intermediates used by them. I find that the upward extension of VAT, which triggers the withholding mechanism, causes an immediate and large (more than 40 log-points) surge in sales reported by firms. The evolution of bunching above the zero-liability point and of input costs reported by firms suggest that this large response is indeed driven by the withholding mechanism. I also explore the role of withholding in the extensive margin compliance choices of firms.

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Choosing anarchy: institutional alternatives and the global order

International Theory ◽

10.1017/s1752971913000304 ◽

2014 ◽

Vol 6 (1) ◽

pp. 28-67 ◽

Cited By ~ 3

Author(s):

Moonhawk Kim ◽

Scott Wolford

Keyword(s):

International Relations ◽

International Institutions ◽

International System ◽

International Relations Theory ◽

Third Party ◽

Global Order ◽

Political Units ◽

Self Enforcement ◽

Interaction Density

The international system may be anarchic, but anarchy is neither fixed nor inevitable. We analyze collective choices between anarchy, a system of inefficient self-enforcement, and external enforcement, where punishment is delegated to a third party at some upfront cost. In equilibrium, external enforcement (establishing governments) prevails when interaction density is high, the costs of integration are low, and violations are difficult to predict, but anarchy (drawing borders) prevails when at least one of these conditions fail. We explore the implications of this theory for the causal role of anarchy in international relations theory, the integration and disintegration of political units, and the limits and possibilities of cooperation through international institutions.

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The Expansion Dilemma for Fourth-Party Logistics Services: Kodan Solutions Private Limited

Vision The Journal of Business Perspective ◽

10.1177/0972262920953430 ◽

2020 ◽

Vol 24 (4) ◽

pp. 506-516

Author(s):

Anupama Prashar

Keyword(s):

Supply Chain ◽

Value Added ◽

Secondary Data ◽

Third Party ◽

Primary Data ◽

Business Trend ◽

Logistics Services ◽

Fourth Party Logistics ◽

Outsourcing Logistics

The purpose of the case is to introduce the students to an emerging business trend of outsourcing the logistics function. The case enables the students to analyse the benefits of outsourcing logistics function and understand the concept of third-party logistics (3PL) and fourth-party logistics (4PL). The case is developed based on the primary data collected through interviews with the protagonist. Also, secondary data from published reports and archives of the company were used for the development of the case. After the case discussion the students will be able to understand the role of project logistics services in the supply chain. They will also understand the role of value-added logistics services such as cross-docking, reverse logistics and customs clearance, and the documentation involved in cross-border logistics. This case is among the first few cases on the concept of project logistics services and their role in the supply chain management.

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The role of value added tax in the economy of Serbia

Ekonomika ◽

10.5937/ekonomika1702069k ◽

2017 ◽

Vol 63 (2) ◽

pp. 69-78 ◽

Cited By ~ 2

Author(s):

Branimir Kalas ◽

Nada Milenkovic

Keyword(s):

Value Added ◽

Value Added Tax

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Role of Value Added Tax in Total Tax Revenue: An Empirical Study of Nepal

Journal of Population and Development ◽

10.3126/jpd.v1i1.33099 ◽

2020 ◽

Vol 1 (1) ◽

pp. 1-12

Author(s):

Ananta Raj Dahal

Keyword(s):

Value Added ◽

Secondary Data ◽

Tax Revenue ◽

Government Revenue ◽

Total Revenue ◽

Value Added Tax ◽

Government Organizations ◽

The World ◽

The Government

This paper examines the role of Value Added Tax (VAT) in total tax of Nepal. Tax is the main sources of government revenue. There are different kinds of tax systems used in the world. The concept of VAT had been introduced in 1919 A D from Germany as a new concept of indirect tax system of the world. VAT system have introduced from 1995 A D in Nepal. The specific objectives are to analyse the trend of VAT and to examine the correlation between VAT with total revenue and total tax revenue in Nepal. This study is based on secondary data, which are incorporated from the Ministry of Finance and other related government as well as non-government organizations. Both analytical and descriptive statistics are applied as methods in this study. At the process of data analysis some statistical tools like regression, correlation, etc. are used. The study shows that VAT has significant percentage in total revenue and total tax revenue in Nepal. There are more than 99 present variations due to VAT in total revenue, total tax revenue and indirect tax revenue. All these relationship are significant as r >6 PEr everywhere. Thus, VAT has significant contribution in government revenue of Nepal. But the system of VAT must be improved to increase its effectiveness through the government policy level and increase awareness tax payers about baling system of VAT.

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The Role of Value Added Tax in the Budget System of the Russian Federation

Vestnik of North-Ossetian State University ◽

10.29025/1994-7720-2019-3-121-130 ◽

2019 ◽

pp. 121-130 ◽

Cited By ~ 1

Author(s):

Noemi A. Mardeyan ◽

Agunda R. Plieva

Keyword(s):

Russian Federation ◽

Value Added ◽

Value Added Tax ◽

The Russian Federation ◽

Budget System

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TRANSFORMATION OF THE VALUE ADDED TAX ADMINISTRATION IN THE CONTEXT OF DIGITAL REALTY

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.01.01.014 ◽

2021 ◽

Vol 1 (1) ◽

pp. 86-93

Author(s):

E. A. KIROVA ◽

Keyword(s):

System Approach ◽

Information Technologies ◽

Value Added ◽

Automated Systems ◽

Value Added Tax ◽

The Real ◽

Real Cost ◽

Analysis And Synthesis ◽

Modern Information

The article deals with the problems of transformation of the administration of value added tax (VAT)in the digital reality. The analysis of tax revenues to the budget is carried out and the role of this tax as a budget-forming one is shown. The article describes the schemes of VAT minimization with the use of "disputed" counterparties, increasing the real cost of products. The methods of the system approach, analysis and synthesis, as well as abstraction and generalization are used. Conclusions are drawn about the possibility of tax authorities by using modern information technologies and automated systems to effectively identify schemes for avoiding VAT taxation.

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