A General Microsimulation Model for the EU VAT with a specific Application to Germany

Lars-Hinrich Siemers ()

International Journal of Microsimulation, 2014, vol. 7, issue 2, 40-93

Abstract: The major sales tax in the EUand in several other countriesis practiced as value-added tax of the consumption type with invoice method. Literature on microsimulation models for VAT is rare, though the importance of VAT has continuously increased. We discuss the issues of VAT-MSM in detail and develop a basic general VAT-MSM, applicable to the EU member states (and beyond). To illustrate the functioning of the general model, we apply it in detail to the specific case of Germany. We provide comprehensive estimation results for the distributional and fiscal effects of the German VAT. Finally, we simulate the effects of a small VAT reform, comparing static and behavioral response simulations.

Keywords: VAT; microsimulation; VAT; exemption; hidden; VAT; burdens; tax; incidence; EU; RWI-VAT-SIM (search for similar items in EconPapers)
JEL-codes: C6 D12 D31 D63 H22 H23 H24 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: A General Microsimulation Model for the EU VAT with a specific Application to Germany (2014)
Working Paper: A General Microsimulation Model for the EU VAT with a specific Application to Germany (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ijm:journl:v:7:y:2014:i:2:p:40-93

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