VAT: The effectivity of electronic tax compliance in the face of the determinants of the tax gap

Abstract

The quest to reduce the informational asymmetry between tax authorities and taxpayers, increasing tax compliance, was one of the main intentions with the implementation of SPED in Brazil. Thus, the need arose to understand its efficiency, as well as its impact on revenue. In this context, this study focused on assessing whether the implementation of SPED had an impact on the ICMS tax gap, from the perspective of tax auditors, using the PLS-SEM structural equation modeling technique. As a result, the significant influence of the tax gap determinants presented in the literature and SPED on the ICMS tax gap was observed, with emphasis on more agile and comprehensive inspections, greater access to taxpayer information, influence on the taxpayer's decision to reduce the portion of amounts to be withheld and the identification of those who declare amounts lower than those due, contributing with legislators and tax authorities in the development of policies to optimize collection.