VAT Listings within the EU Member States and Their Impact on Tax Evasion

Designing VAT Systems: Some Efficiency Considerations

Alžběta Holá, Markéta Arltová and Hana Zídková

CESifo Economic Studies, 2022, vol. 68, issue 3, 297-318

Abstract: VAT represents one of the most important taxes in the EU; however, this tax is highly affected by tax evasion. To combat these frauds, almost all the member states have implemented anti-fraud measures. This article focuses on the regular reports required from VAT payers in some EU member states. This tool is called differently in various countries; this article adopts the name VAT listing. The main aim of this article is to find out whether these measures contribute to a better collection of VAT. The level of VAT collection is within the analysis expressed by the VAT gap. In the panel regression model, the effect of the introduction of VAT listings on the size of the VAT gap was determined using control variables potentially affecting the VAT gap. The results were then verified using an alternative difference-in-differences design with multiple time periods. The results showed that VAT listings reduce the value of the VAT gap, as does using of credit cards for payments and low corruption in the country. On the other hand, the implicit rate of consumption taxes, the final consumption, imports from EU countries, and the number of items in the reverse charge increase the VAT gap. (JEL codes: C33, H26)

Keywords: panel data; difference-in-differences; VAT evasion; taxation (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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