A Multi-Sectoral Model for Estimating VAT Revenues in Hungary

Jean Tesche

Chapter 8 in Tax Modelling for Economies in Transition, 1998, pp 119-132 from Palgrave Macmillan

Abstract: Abstract Most Central and Eastern European countries have recently replaced the traditional turnover tax system, with its multiplicity of rates, with a value added tax (VAT). Since the VAT is a major source of tax revenue, it is important to have a reasonably accurate means of estimating the base and potential revenue. When exports are exempted and a credit for capital investment is allowed, the VAT is essentially a retail sales tax and can be estimated from sales. However, once a number of exemptions is added, estimation becomes more complex. Taxes are not paid on exempt goods, but neither is a credit received for purchases of exempt goods. Exempt goods must be taken out of the taxable base, but when an exempt good is purchased to produce a taxable good, it must be added back in.

Keywords: Total Supply; Base Revenue; Taxable Supply; Multisectoral Model; Trade Trade (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-14109-8_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349141098

DOI: 10.1007/978-1-349-14109-8_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().