{
  "title": "Key Questions in Considering a Value-Added Tax for Central and Eastern European Countries",
  "publication": "IMF Working Papers, July 1, 1991",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/key-questions-in-considering-a-value-added-tax-for-central-and-eastern-european-countries-1836",
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  "summary": "In the course of introducing a market-oriented tax system, most Central and Eastern European countries are actively considering the merits of a value-added tax (VAT).",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Purpose: Examines a wide range of social, economic, structural, and administrative issues pertinent to the introduction of a value-added tax (VAT) in Central and Eastern European countries transitioning to market-oriented tax systems.\n- Scope: Draws on the experience with value-added taxation of member states of the European Community (EC) and other OECD countries."
    },
    {
      "heading": "Key issues examined",
      "content": "- Burden distribution of the VAT.\n- Effect of the VAT on the price level and economic growth.\n- Coverage of the tax and definition of the tax base.\n- Choice of the rate structure.\n- Legal and administrative aspects of VAT implementation and administration.\n- Operational topics referenced in keywords: border tax adjustment, collection date, tax-credit VAT, VAT administration, VAT auditor, VAT base, VAT liability, VAT treatment."
    },
    {
      "heading": "Findings and analytical themes (as presented)",
      "content": "- The paper analyzes how VAT implementation affects distributional outcomes (burden distribution).\n- It assesses macroeconomic implications, specifically impacts on the price level and economic growth.\n- It evaluates structural design choices: coverage, base definition, and rate structure.\n- It reviews legal and administrative requirements and options for effective VAT administration, drawing on EC and OECD country experiences."
    },
    {
      "heading": "Policy considerations and recommendations (topics emphasized)",
      "content": "- Design VAT to balance coverage and equity concerns (coverage and base definition).\n- Consider rate-structure choices in light of distributional and growth effects.\n- Address legal and administrative frameworks to ensure enforceability and efficient administration.\n- Incorporate lessons from EC and OECD VAT experiences in tailoring VAT to transition economies.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/key-questions-in-considering-a-value-added-tax-for-central-and-eastern-european-countries-1836"
    }
  ],
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    "[Markdown version](/en/publications/wp/issues/2016/12/30/key-questions-in-considering-a-value-added-tax-for-central-and-eastern-european-countries-1836/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/key-questions-in-considering-a-value-added-tax-for-central-and-eastern-european-countries-1836/index.json)",
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    "Authors: Sijbren Cnossen",
    "Published: July 1, 1991",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451960631.001",
    "Purpose: Examines a wide range of social, economic, structural, and administrative issues pertinent to the introduction of a value-added tax (VAT) in Central and Eastern European countries transitioning to market-oriented tax systems.",
    "Scope: Draws on the experience with value-added taxation of member states of the European Community (EC) and other OECD countries.",
    "Burden distribution of the VAT.",
    "Effect of the VAT on the price level and economic growth.",
    "Coverage of the tax and definition of the tax base.",
    "Choice of the rate structure.",
    "Legal and administrative aspects of VAT implementation and administration.",
    "Operational topics referenced in keywords: border tax adjustment, collection date, tax-credit VAT, VAT administration, VAT auditor, VAT base, VAT liability, VAT treatment.",
    "The paper analyzes how VAT implementation affects distributional outcomes (burden distribution).",
    "It assesses macroeconomic implications, specifically impacts on the price level and economic growth.",
    "It evaluates structural design choices: coverage, base definition, and rate structure.",
    "It reviews legal and administrative requirements and options for effective VAT administration, drawing on EC and OECD country experiences.",
    "Design VAT to balance coverage and equity concerns (coverage and base definition).",
    "Consider rate-structure choices in light of distributional and growth effects.",
    "Address legal and administrative frameworks to ensure enforceability and efficient administration.",
    "Incorporate lessons from EC and OECD VAT experiences in tailoring VAT to transition economies."
  ],
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