The effect of card payments on VAT revenue: New evidence from Greece
George Hondroyiannis () and
Dimitrios Papaoikonomou ()
Economics Letters, 2017, vol. 157, issue C, 17-20
The anticipated positive effect of card payments on VAT revenue performance has eluded empirical confirmation. The case of Greece provides a unique study ground, as the imposition of restrictions on cash withdrawals in July 2015 triggered a surge in card payments and in VAT revenue. Applying time-varying coefficient methods to Greek data during 2003q4–2016q2 we find that (i) a 1pp increase in the share of card payments in private consumption results in approximately 1% higher revenue through increased compliance; (ii) lowering the VAT rate can generate revenue gains; (iii) card transactions may facilitate tax buoyancy.
Keywords: VAT; Card payments; Time-varying coefficients; Greece (search for similar items in EconPapers)
JEL-codes: H21 H25 H26 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:157:y:2017:i:c:p:17-20
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().