Abstract
AbstractIn order to stop Value-Added Tax (VAT) fraud, EU member states use the so-called reverse-charge (RC) mechanism, which effectively removes VAT withholding and refunding in business-to-business transactions. Using the German VAT return data, we examine the effects of the introduction of RC and find that requests of input tax refunding decline sharply in the affected industries, supporting the presence of fraud prior to the introduction of RC. Based on our estimates, we quantify the revenue losses from VAT fraud prior to RC implementation in these industries to be around 5% of VAT revenues.
Funder
Friedrich-Alexander-Universität Erlangen-Nürnberg
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,Finance,Accounting
Reference70 articles.
1. Agbo, E. I., & Nwadialor, E. O. (2020). The genesis and development of value added tax administration: Case study of Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(2), 15–30.
2. Ainsworth, R. T. (2006). Carousel fraud in the EU: A digital VAT solution. Tax Notes International, 42, 5.
3. Ainsworth, R. T. (2011). VAT fraud as a policy stimulus—Is the US watching? VAT withholding, RTvat, and the mittler model. Tax Notes International, 62, 397.
4. Ali, A. (2021). Value added tax on cross-border digital supplies: The Kenyan approach under the finance act 2019. Journal of Intellectual Property and Information Technology Law, 1, 37–62.
5. Barbone, L., et al., (2013). Study to quantify and analyse the VAT Gap in the EU-27 Member States. 116.
Cited by
7 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献