Value Added Tax Revenue Research Articles

Optimizing VAT threshold: The key to improving VAT performance

The low tax ratio in Indonesia is an issue often associated with suboptimal tax revenue performance. This study examines the role of the threshold for Value Added Tax (VAT), which is suspected to significantly influence the optimization of VAT revenue, while also exploring the effect of VAT rate and Gross Domestic Product (GDP) per capita. The study analyze data from member countries of the Organization for Economic Co-operation and Development (OECD) in 2022 using multiple linear regression methods. The results show that increases in the VAT threshold and VAT rate positively impact VAT revenue performance, while an increase in per capita GDP has a negative effect. A higher VAT threshold allows the country to focus on larger taxpayers, while the Micro, Small, and Medium Enterprises (MSMEs) benefit from reduced administrative burdens. These findings can serve as a basis for government evaluation in determining the appropriate threshold and VAT rates to enhance tax revenue performance optimally.

Analysis of Value Added Tax Revenue in Indonesia from 1990 to 2022

In enhancing welfare and advancing Indonesia, the government plays a crucial role in promoting economic cooperation and implementing effective fiscal regulations, one of which is through optimizing revenue from the taxation sector. Value Added Tax (VAT) is a key tax instrument that serves as an important source of state revenue. As a significant tax instrument, VAT revenue plays several crucial roles, including supporting the state's fiscal revenue, funding infrastructure development, and providing public services. Therefore, this study aims to analyze the factors influencing VAT revenue in Indonesia. This research uses time series data covering the period from 1990 to 2022. The analytical method employed is the ECM (Error Correction Model) analysis to examine both long-run and short-run effects. The independent variables used in this study include Government Consumption, C-Efficiency, and Import Tariffs. Meanwhile, the dependent variable is VAT revenue in Indonesia. The results of this study show that government consumption and C-efficiency has a positive and significant impact on VAT revenue in both the long-run and short-run. Meanwhile, the import tariff variable negatively and significantly impacts long- run revenue, but has no effect in the short run.

PENGARUH PEMERIKSAAN PAJAK, JUMLAH PENGUSAHA KENA PAJAK DAN PENAGIHAN PAJAK TERHADAP PENERIMAAN PAJAK PERTAMBAHAN NILAI

This study aims to analyze the effect of tax audits, the number of taxable entrepreneurs and tax collection on value-added tax revenue, case studies at KPP Pratama Kuningan and KPP Pratama Cirebon Satu. The population in this study is tax audit data, the number of taxable entrepreneurs, tax collection and value-added tax revenue at KPP Pratama Kuningan and KPP Pratama Cirebon Satu 2018-2022 per month totaling 60 months at each KPP. The sampling used in this study used a saturated sample where all populations were used as samples. This study used multiple linear regression method. Statistical testing using SPSS Version 23. The results showed that the results of simultaneous tests of Tax Audit, Number of Taxable Entrepreneurs and Tax Collection had a significant effect on Value Added Tax Revenue. As for the partial test results of the Tax Audit variables, the Number of Taxable Entrepreneurs and Tax Collection have a positive and significant effect on Value Added Tax Revenue. Keywords : Tax Audit, Number of Taxable Entrepreneurs, Tax Collection, Value Added Tax Revenue.

The Effect of E-Commerce, Tax, Supervision, and Tax Audit on Value-Added Tax Revenue (Case Study on Kudus Regency Taxpayers)

Internet technology has a huge influence on the world economy. More economic activities are carried out using internet media. Seeing the potential for the development of e-commerce has made business people dive into the digital world. The explosion of e-commerce is about the attraction of the business world and the state represented by the tax authorities, in this case, the Directorate General of Taxes, Central Java Regional Office in Kudus Regency. In line with the government's proposal to tax e-commerce as a source of state revenue and expenditure, awareness of the important role of e-commerce in the current digital-based business environment requires collaboration between relevant stakeholders to strive for a climate and mechanisms that encourage the development and growth of e-commerce, trade and protect the activities that take place therein. This research used a questionnaire on 185 Kudus district taxpayers registered on the marketplace using 25 SPSS data analysis. E-commerce is proven to have an influence on value-added tax revenue. Tax supervision has been proven to have an influence on Value Added Tax Revenue. The audit proved that taxes have a positive effect on value-added tax revenues. The research results show that all variables used have a positive effect on value-added tax revenues.

PENGARUH PENERAPAN PMK-59/PMK.03/2022 TERHADAP PENERIMAAN PPN PADA KPP PRATAMA KEBAYORAN BARU SATU

The aim of writing this scientific work is to research and evaluate the impact of the implementation of the Republic of Indonesia Minister of Finance Regulation (PMK) Number 59/PMK.03/2022 on domestic Value Added Tax revenues in government agencies in the working area of ​​the Jakarta Kebayoran Baru Satu Primary Tax Service Office. The research population included 194 taxpayers (WP) of government agencies located in the working area of ​​KPP Pratama Jakarta Kebayoran Baru Satu, including Senayan Subdistrict with 46 WPs, Petogogan Subdistrict 30 WPs, Selong Subdistrict 105 WPs, Rawa Barat Subdistrict 2 WPs, and Gunung Gunung Subdistrict as many as 11 WP. The data source used in the research is primary data known from the State Revenue Module of the Jakarta Kebayoran Baru Satu Primary Tax Service Office. The research method used is a quantitative approach with descriptive methods. The results of the research show that the implementation of PMK-59/PMK.03/2022 has a positive impact on domestic Value Added Tax revenues in government agencies.

DETERMINAN PENERIMAAN PAJAK PERTAMBAHAN NILAI

The purpose of this research is to obtain empirical evidence of the effect of the Self Assessment System, Tax Audit, Tax Collection, Number of Taxable Entrepreneurs, Number of e-billings and Number of e-filings on value added tax revenue at KPP Pratama Tanjung Pandan. The population in this study were all corporate taxpayers at KPP Pratama Tanjung Pandan. The sampling technique in this study used purposive sampling technique so that the samples are taken based on certain criteria. The criteria used are corporate taxpayers who are registered and active as taxable entrepreneurs at the Tanjung Pandan KPP Pratama during the 2015-2022 period. The research carried out is a time series study for 8 years with monthly data units, so the total number of samples was 96. The results of this research show that 2 (two) independent variables, Self Assessment System and e-billing have a positive effect on value added tax revenues at KPP Pratama Tanjung Pandan. Meanwhile, the other 4 (four) independent variables are tax audit, tax collection, taxable entrepreneurs, and e-filing have no effect on value added tax revenue at KPP Pratama Tanjung Pandan.

Pengaruh Kenaikan Tarif PPN, Literasi Pajak, Dan Literasi Keuangan Terhadap Potensi Penerimaan Pajak Pertambahan Nilai (PPN) Pada Kecamatan Ilir Timur 1 Kota Palembang

This study aims to examine the effect of VAT Rate Increase, Tax Literacy, and Financial Literacy on Potential Value Added Tax (VAT) Revenue. This study uses primary data by distributing questionnaires to 398 people in the Ilir Timur I district of Palembang city. The data were analyzed using multiple linear regression analysis, assisted by IBM SPSS Statistics 25 software. The results of this study indicate that the increase in VAT rates and tax literacy partially affect the potential for VAT revenue. However, financial literacy partially has no effect on potential VAT revenue. The increase in VAT rates, tax literacy, and financial literacy simultaneously affect the potential for VAT revenue.

The Effect Of Economic Growth And Inflation On Value Added Tax Revenue In ASEAN Countries With Foreign Direct Investment As a Moderation

Goods and Services Tax or also known as Value Added Tax is one of the taxation systems implemented by many countries around the world. The VAT system has been implemented in most ASEAN member countries with various rates. This study aims to analyze the effect of economic growth and inflation on VAT revenue in ASEAN countries in the period 2012 to 2019. In addition, this study will also examine the effect of foreign investment as a moderating variable. The analysis method used is panel data multiple linear regression analysis. The results showed that the GDP and FDI variables had a positive and significant effect on VAT revenue and the CPI variable had a negative and significant effect on VAT revenue. Furthermore, FDI weakens the relationship between economic growth and VAT revenue and FDI does not affect the relationship between inflation and VAT revenue. Due to the limited availability of data, it is expected that future research can use more comprehensive and up-to-date data so that it can be more accurate and relevant in analyzing the factors that affect VAT revenue in ASEAN countries.

Assessing the Impact of Value Added Tax (VAT) On Government Revenue in Zambia

This research aimed to assess the impact of Value Added Tax (VAT) on government revenue collection. The study employed a mixed methods research design, which combines both qualitative and quantitative methodologies. The study focused on a population of 500 management-level employees at the Zambia Revenue Authority and Ministry of Finance. Seeing that the study was heavy on qualitative approach and had specific type of cadre to provide the necessary information, a sample of 30 respondents was utilized which was purposively sampled. The secondary sources on the other hand mainly involved published documentation such as reports obtained from Zambia Revenue Authority official website and journals that provided the conceptual framework and a definite meaning to the topic. Regarding the effect of VAT on Government revenue, the study revealed that an increase in VAT rate may lead to higher VAT revenue, assuming a stable level of compliance. With regard to effect of VAT on consumer behavior, it was established that when VAT rates are elevated in Zambia, the prices of a wide array of goods and services subject to VAT increase accordingly, hence consequently, higher VAT rates can drive consumers to opt for saving or investing their money rather than immediate spending. This may simultaneously lead to a reduction in consumer spending, potentially impeding economic growth. As regards to ascertaining measures to address challenges related to VAT collection, findings indicated that effectiveness of VAT is contingent upon addressing the challenges inherent in VAT collection, optimizing VAT rate policies, and adapting the system to the country's unique economic context. The study offers several recommendations, including: improving tax administration through the Zambia Revenue Authority (ZRA); combating tax fraud and evasion; simplifying VAT regulations; enhancing taxpayer education and awareness; carefully considering exemptions and thresholds; and implementing monitoring and evaluation mechanisms for VAT revenue. Further study is recommended to explore the informal economy's role in VAT collection in Zambia and its implications

Analyzing the Relationship between Government Revenue and Economic Growth in Kenya from 2012-2022 using Multiple Linear Regression

The relationship between government revenue and economic growth is a debate that has existed for a long time in the living history.Government revenue impacts economic growth differently within different regions. Some researchers argue that government revenue positively affects economic growth while others argue that the relationship is negative. However, minimal literature exists exploring the relationship between the two variables at country specific level. The objective of this study was to determine the relationship between Government revenue and economic growth in Kenya. The research adopted the correlational study design. The study used secondary data collected from the Central Bank of Kenya, KNBS, and Government records such as the finance Act. We collected data on different sources of Government Revenue such income tax, Value Added Tax (VAT), excise duty, import duty, Other tax income. The study also included data on non-tax revenue. The set of data under the study was from the financial years 2011/2012 to 2022/2023. The analysis has been done by the use of R software. To identify the level of association of the study variables such as GDP,Income tax,VAT,excise tax,import duty,other tax and non-tax revenue, he study employs multiple linear regression analysis. To check on the level of significance, we tested at 5% significant levels. The p-value is 0.008462 which was less than 0.05 hence we reject the null hypothesis and conclude that there is significant positive relationship between Government Revenue and Economic growth in Kenya.

Industrial Revolution In Agriculture And Manufacturing Sector 4.0 Whether It Has The Potential To Increase Value Added Tax Revenue: Case Study In Balkan

The urgency of tax revenue in a country is something that is emphasized by the government. In this research, Value Added Tax revenue is the focus to be examined because it is related to many economic sectors. Therefore, the government tries to obtain tax revenue from various economic sectors to meet the country's targets and needs. This study aims to determine the impact of the agricultural sector and the manufacturing industry sector on Value Added Tax (VAT) revenues or what we know as Value Added Tax or VAT in the Balkan region on the European continent, with Foreign Direct Investment (FDI) moderation, through descriptive quantitative methods based on data from the World Bank. Through this research, it is found that the agricultural sector hurts VAT revenue, as well as the manufacturing industry sector which hurts VAT revenue. However, for the farming sector and the manufacturing industry sector which are moderated by the Foreign Investment variable, it is found that both do not affect revenue. Then the last moderation variable alone, namely Foreign Investment, does not affect revenue. It is hoped that this research will provide new insights related to the agricultural sector and the industrial sector with its influence on Value Added Tax revenue.

Machine Learning-Based Predictive Analysis on Electronic Billing Machines to Value Added Tax Revenues Growth

This paper explores the application of predictive analysis in assessing the impact of Electronic Billing Machines (EBMs) on Value Added Tax (VAT) revenue growth in Rwanda. EBMs represent a significant innovation in VAT revenue collection, yet negative taxpayer perceptions and a lack of understanding impede their full potential. Without predictive analysis, accurately projecting the growth in VAT revenues due to EBM implementation remains a challenge for the Rwanda Revenue Authority. Using machine learning techniques and historical data obtained from Rwanda Revenue Authority Annual reports, this research aims to develop a predictive system capable of forecasting the influence of EBMs on VAT revenue growth. Employing a descriptive survey design approach, secondary data analysis was conducted to gather information on VAT taxpayers, EBM users, VAT revenues, and other relevant variables. The study reveals a notable increase in EBM adoption among VAT payers over a six-year period, indicating successful governmental efforts. Time series analysis demonstrates a positive correlation between EBM usage and significant increases in both VAT and total tax revenues. The Seasonal Autoregressive Integrated Moving Average (SARIMA) model, specifically an ARIMA (1, 0, 0) model, is identified as suitable for forecasting VAT revenue growth due to its balance between accuracy and simplicity. The developed predictive system provides highly accurate forecasts of VAT revenue growth, facilitating informed fiscal policymaking and enhancing financial stability and revenue collection in Rwanda.

Value Added Tax and Economic Growth of Nigeria (2003-2022)

This study empirically examined the relationship between value added tax and economic growth of Nigeria. Time series data on Value Added Tax (VAT) revenue, Total (Federal Government) Revenue (TR), Total (Federal Government) Expenditure (TE) and Gross Domestic Product (GDP) from 2003 to 2022 sourced from the Central Bank of Nigeria (CBN) were analysed, using both simple regression analysis and descriptive statistical method. VAT was used as the independent variable while TR, TE and GDP were used as the dependent variables. Findings showed that VAT revenue accounts for a significant variation in TR, TE and GDP in Nigeria. A very significant and positive correlation also exist between VAT revenue and TE but that the contribution of VAT to TE cannot be directly traceable to any specific expenditure of government like health, education or payment of salaries. The study therefore recommends that government should use a certain percentage of VAT revenue to finance critical sectors of the economy like agriculture, power or health which have direct bearing on the citizens. This can be achieved by establishing a Value Added Tax Fund (VATFund) as is the case with Tertiary Education Trust Fund (TETFund) and other Trust Funds of government.

How much does mobility matter for value-added tax revenue? Cross-country evidence around COVID-19

How much does mobility matter for value-added tax revenue? Cross-country evidence around COVID-19

Do more harm than good? The optional reverse charge mechanism against cross-border tax fraud

The so-called ‘missing trader intra-community’ (MTIC) fraud causes enormous losses in value-added tax (VAT) revenue. The fraudsters take advantage of the zero-rated cross-border supplies within the European Union (EU) and resell the goods domestically without paying the received VAT to the tax authorities. One of the most prominent measures to combat this scheme is the optional reverse charge mechanism (RCM) that shifts the VAT liability from the supplier to the customer in business-to-business transactions. Using asymmetries in international trade (trade data gap, TDG), we identify the fraud-reducing effect of the RCM. For the observation period (2003 – 2019) within the EU, we quantify this effect in terms of the VAT revenue between 7.5 and 7.7 billion euros using a midpoint estimate. Additionally, we are the first to provide empirical evidence of a harmful fraud relocation from RCM countries to non-RCM countries. This explains the domino effect of RCM introductions in the EU and calls for a unified approach to VAT fraud.

Tax revenue lost due to illicit cigarettes in South Africa: 2002−2022

ObjectiveTo estimate lost excise and value-added tax (VAT) revenue as a result of illicit cigarette trade from 2002 to 2022.DesignUsing gap analysis, we estimated the number of illicit cigarettes by...

The determinants of compliance VAT gap

PurposeThis paper aims to analyze the potential variables explaining the compliance value added tax (VAT) gap, which basically represents an estimate of the unpaid VAT in the economy. A major component of compliance VAT Gap is represented by tax fraud; there exist other causes too, like insolvencies, bankruptcies, optimizations practices and maladministration. The objective of our paper is to revisit the main determinants of the VAT compliance gap for the European Union (EU)-27 member states. Using econometric modeling, our study identifies the relationship between the VAT gap and various determinants of it.Design/methodology/approachOur work focuses on the shadow economy, final consumption, VAT revenues, standard VAT rates, differences between the standard and reduced rates, economic prosperity, press freedom, political stability and others, as determinants of European VAT compliance gaps, for the 2005–2020 time interval. The methods include panel data analysis through simple and multiple regression modeling, the combinatorial approach, fixed and random effects.FindingsOur study validates the direct impact of shadow economy and the indirect impact of VAT revenues, economic prosperity and press freedom, upon VAT compliance gaps. Upon subsampling of EU member states within old and new ones, our results estimate a larger positive impact of shadow economy upon old member states, compared to new ones.Practical implicationsThe policy implications include leverage effects of governments acting upon a reduction in shadow economy phenomena and boosts of economic development, political stability and press freedom, in order to attain the contraction of compliance VAT gaps.Originality/valueOur paper sheds light in a poorly explored scientific area, that of the determinants of VAT gap, especially in relationship with financial and economic crime phenomena.

Determinants Of The VAT Gap In The European Union: An Empirical Evidence with Corruption Control As A Moderating Variable

The aim of this study was to determine the effect of Shadow Economy, Economic Growth, Trade Openness, and Corruption Control on VAT Gap. Additionally, this study aims to examine the moderating effect of Corruption Control on the relationship between independent variables and the dependent variable. The study was conducted using panel data regression with Panel-Corrected Standard Errors (PCSE) model in 25 European Union countries for the 2003-2020 period. The research findings indicate that all independent variables simultaneously have a significant impact on VAT Gap. Partially, Shadow Economy has a positive effect on VAT Gap, while Economic Growth has a negative effect on VAT Gap. However, Trade Openness and Corruption Control do not significantly affect VAT Gap. Corruption Control only moderates the relationship between Shadow Economy and VAT Gap negatively. This suggests that effective corruption control measures in EU countries can reduce the negative impact of Shadow Economy on VAT revenue. Based on this research, policymakers are expected to implement comprehensive monitoring and auditing practices, simplify business regulations, and enhance education and support to mitigate the potential loss of value-added tax (VAT).

Value Added Tax Revenue: The Role of the Self Assessment System for Tax Audits, Tax Collection with VAT Restitution as a Moderating Variable

This study aims to explore the effects of the self-assessment system, tax audit, and tax collection on value-added tax revenue. Specifically, we aim to investigate whether the self-assessment system and value-added tax audit impact VAT restitution at KPP Pratama Jakarta Kelapa Gading. We conducted a quantitative research study using a causality approach, utilizing multiple linear regression analysis and moderated regression analysis with the assistance of Eviews Software. Our population consists of taxable entrepreneurs at the Jakarta Kelapa Gading Pratama Tax Service Office from 2016 to 2021, and our sample size is nearly 3000 taxpayers. We collected secondary data directly through KPP Pratama Jakarta Kelapa Gading. Our findings suggest that the self-assessment system and tax audits do not significantly impact value-added tax receipts, while tax collection has a positive impact. Additionally, VAT restitution does not affect value-added tax receipts. We also discovered that if VAT refunds moderate the Self Assessment System, Audit Taxes, and Tax Collections, their influence on Value Added Tax Revenues does not weaken. To improve compliance with tax obligations, we recommend that KPP, particularly Pratama Jakarta Kelapa Gading, enhance integrated tax education to increase Taxpayers’ understanding of the importance of fulfilling tax obligations correctly and the benefits of being a responsible citizen by paying taxes. Furthermore, supervision of tax regulations and tax collection should be strengthened to promote taxpayers’ awareness of their tax obligations and support the development of our nation and state.

Exploring The Impact Of Per Capita Income And Population Size On VAT Revenue In APEC Member Countries

This research aims to evaluate how per capita income and population size impact Value Added Tax (VAT) revenue, considering corruption control variables as moderating factors. VAT revenue is the dependent variable in this study, while per capita income and population size are the independent variables. The influence of corruption control variables is also explored as interacting with the independent variables in affecting VAT revenue. The data used is sourced from World Bank Data, covering the period from 2008 to 2020. The analytical method employed is panel data regression using the panel-corrected standard error (PCSE) model. The research results indicate that per capita income has a negative influence on VAT revenue, meaning that as a country's per capita income increases, VAT revenue tends to decrease. Meanwhile, population size has a positive impact on VAT revenue, indicating that as a country's population size grows, VAT revenue tends to increase. Furthermore, it is found that the influence of corruption control variables interacts with per capita income. This interaction strengthens its impact on VAT revenue. However, when corruption control variables interact with population size, their influence on VAT revenue becomes weaker.