The Efficiency of VAT Implementation: A Comparative Study of Central and Eastern European Countries in Transition
July 1, 1996
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Summary
This paper presents calculations of the efficiency with which value-added taxes are collected in five transition economies in Central and Eastern Europe. Actual VAT revenues in 1994 are compared with those that would have resulted if the statutory VAT rates had been applied without any revenue leakage. The five countries fall into two broad groups, one exhibiting relatively high collection efficiency, and the other relatively low efficiency. While lack of detailed information on tax rules and consumption patterns makes definitive conclusions difficult, the impact of exemptions is shown to likely strengthen the comparative results.
Subject: Average effective tax rate, Consumption, Effective tax rate, National accounts, Revenue administration, Tax policy, Taxes, Value-added tax
Keywords: Average effective tax rate, Consumption, credit-invoice type, Eastern Europe, Effective tax rate, household consumption pattern, invoice, rate, system characteristic, Value-added tax, VAT, VAT law, VAT payer, VAT rule, VAT system, WP
Pages:
18
Volume:
1996
DOI:
Issue:
079
Series:
Working Paper No. 1996/079
Stock No:
WPIEA0791996
ISBN:
9781451955828
ISSN:
1018-5941
