Abstract
ABSTRACT This paper explores the response of small-scale value-added tax (VAT) taxpayers to the changes of VAT thresholds and VAT tax rates. Using firm-level tax administrative data for the period between 2005 and 2012, we find that firms tend to bunch around the VAT thresholds. We also find that commercial firms and firms with higher value-added ratios are less likely to register as general taxpayers. We provide an estimate of the elasticity of the VAT tax base in the range of 0.027 and 0.05.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
