VAT Revenue Research Articles

Empirical Analysis of Vat Revenues on the Economic Growth of Albania

Objective: The presence of VAT revenues and its management to improve economic growth is crucial, very complex, and challenging. The aim is to see the influence of VAT revenue on economic growth, especially those that come from customs. Theoretical Framework: In this topic, the researchers are focused on the direct relationship between total VAT revenues and economic growth. According to the statistics of our economy, we choose to investigate the VAT revenues from customs looking to estimate their specific weight on the economic growth. Methods: In the econometric model, we introduce the VAT revenues from customs as the variable taken with precaution regarding value gain. Other variables based on the perspective of it, like CPI (inflation) and rate of exchange euro/all, are included in the model. Aggregate data presented by the official institutions are used to determine the influence of VAT on the economic growth measured by the GVA variable. This choice eliminates the duplication of the economic growth value by taxes and subsidies on products. Results and Discussion: The results underline the influence of VAT and CPI on economic growth (p< 0.05). Therefore, the reduction of the inflation rate and the application of an optimal rate of VAT regarding the parameters of the economic situation in the country remains an emergency in recent days.

PEMBERLAKUKAN PENGARUH PAJAK PERTAMBAHAN NILAI TERHADAP TRANSAKSI UMKM E-COMMERCE (Implementation Of The Influence Of Value Added Tax On E-Commerce Msme Transactions)

Purpose: To describe and explain the effect of Value Added Tax on MSME E-Commerce transactions. Research Methodology: The research approach used is descriptive qualitative and the type of research is library research. Results: (1) Technological developments have positive and negative impacts for business people and buyers who have the option of shopping online without having to see them in person. (2) The potential for PNN revenue from e-commerce transactions is very high. (3) Barriers to VAT collection for e-commerce transactions are due to low awareness of business actors, weak law enforcement, and the absence of special regulations. (4) The VAT revenue contribution from e-commerce transactions in Indonesia has the potential for very significant results. Limitations: The limitations of this research are as follows: (1) the variables used are limited to the Implementation of the Effects of Value Added Tax; (2) this research is still in narrative form; and (3) this research only uses literature study as the method. Contribution: This research is expected to provide knowledge to readers regarding the Effect of Value Added Tax on E-Commerce MSME Transactions How to cite: Hartati, L., Gunawan, A., & Evrita, R. E. (2024). Pemberlakukan Pengaruh Pajak Pertambahan Nilai Terhadap Transaksi Umkm E-Commerce. Studi Akuntansi, Keuangan, dan Manajemen.

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.

Impact of Value Added Tax on Indirect Tax and Total Tax Revenue: An Empirical Study from Nepal

This study examines the impact of value-added tax on indirect tax and total tax revenue collection in Nepal. The secondary data that covers 48 annual data points collected from the various economic surveys are used in this study. Descriptive and exploratory research designs are used. Some statistical and econometric tools like graphs, scatter plots, regression analysis, variance analysis, multicollinearity test, normality test (Shapiro-Wilk), and heteroscedasticity test are used. VAT revenue is statistically significant in determining Indirect tax and total tax revenue in Nepal. One percent increase in value-added tax results in 0.919 and 0.944 percent increase in indirect tax and total tax revenue in Nepal. A variation of 98.9 percent in indirect tax and 97.8 percent in total tax revenue depends upon VAT in the Nepalese economy. Policymakers in Nepal might use these findings to make informed decisions regarding VAT rates and policies, recognizing the substantial influence of VAT on overall tax revenue. Int. J. Soc. Sc. Manage. Vol. 11, Issue-(1-2): 27-33.

Pengaruh Self Assessment System Dan Pemeriksaan Pajak Terhadap Penerimaan Pajak Pertambahan Nilai (PPN) Di KPP Pratama Surabaya Rungkut

This study aims to determine and analyze and answer the role of self assessment system and tax audit on VAT revenue at KPP Pratama Rungkut Surabaya. This study uses a sampling technique, namely purposive sampling where the sample is taken with certain criteria, namely corporate taxpayers registered as taxable entrepreneurs who are still productive. This study takes secondary data in the form of documents obtained from KPP Pratama Rungkut including data on the number of VAT Periodic Tax Returns, VAT revenue realization data, data on the number of SKP values in 2020-2022. The type of research used is using quantitative research methods. The data analysis techniques used are multiple linear regression and . Meanwhile, the classical assumption tests used are normality, heteroscedasticity, autocorrelation and multicollinearity tests. Overall the indicators used are valid. The classical assumption results also meet, among others, the two regression models are free from multicollinearity, no heteroscedasticity, no autocorrelation, the residuals of the two regression models are normally distributed. The findings of this study indicate that the self-assessment system has a positive and significant effect on VAT revenue at KPP Pratama Rungkut Surabaya. Tax audit has no positive and significant effect on VAT revenue at KPP Pratama Rungkut. Self-assessment system and tax audit simultaneously have a positive and significant effect on VAT revenue at KPP Pratama Rungkut.

FURTHER STUDIES ON THE PHENOMENON OF TAX OPTIMISATION VERSUS TAX EVASION - THE SCOURGE OF CONTEMPORARY SOCIETY

In this paper we aim to study the phenomen of tax evasion and tax optimization at the European Union level, in particular on value added tax, in order to outline the concept of the VAT revenue shortfall and to identify its determinants. Tax evasion is a complex and persistent problem faced by most countries around the world. This harmful practice affects the budgets of countries, reducing their revenues and jeopardising the sustainability of tax systems. Either tax evasion or tax optimisation both have the same strategic objective, namely to reduce through legal or illegal means the financial resources allocated to the state budget as taxes or duties. In order to ensure that we achieve the above-mentioned goal, we have set ourselves the objective of carrying out a study in EU member countries on the determinants of the VAT gap.

Indirect taxation on VAT consumption. A possible study of alternative tax rate models in Portugal

The adoption of a single VAT rate system in the EU is a complex and controversial issue, since the current model includes several differentiated rates and is intended to reflect sectoral needs and ensure greater fairness in the taxation of consumption. This study aims to analyse which of the general consumption tax models (differentiated rates or a single rate) is more efficient in terms of revenue collection. The study uses official statistics available on the official website of the Tax and Customs Authority for the period 1996–2022. VAT revenue is measured by applying the formula of the EU’s common VAT model with the necessary adaptations to the flat rate model. Quantitative methods are applied to verify which of the tax models is more efficient in terms of collection. For this purpose, two scenarios were defined (17% and 21%). The results suggest that the estimated revenues for the proposed flat rate models are higher than the amounts actually collected through the differentiated rates. They also suggest that the 21% flat rate is preferable to the 17% rate, although the latter has the capacity to maintain current revenue levels and increase the amount collected compared to the current system. The conclusions suggest that the single VAT rate model is technically more preferable and notably more efficient than the current common consumption tax model adopted by the European Union. The study concludes that the refusal to adopt the single-rate model is not due to technical reasons but to political ones.

Analysis Of The Effectiveness Of Pmse Vat Collection Based On The Tax Directorate's Instructions In Increasing Tax Revenue At The Primary Tax Offce Of West Bekasi

Through law Number 2 of 2020, the Indonesian government began to impose taxes on Trading Transactions Through the Electronic System (PMSE). The phenomenon behind this research is the many obstacles that caused the realization of PMSE VAT revenue in certain years to fail in meeting the targets set by the government; 99.13% in 2019 and 85.17% in 2020. Only in 2021 the PMSE VAT revenue exceeded the target, i.e. 101.39%. Meanwhile, the number of registered Taxable Entrepreneurs (PKP) continues to increase every year. This study was conducted to analyze the effectiveness of PMSE VAT collection based on the instructions of the Directorate of Taxes in increasing tax revenue at the Primary Tax Offce of West Bekasi in 2019-2021. In this study the author used Duncan's theory of effectiveness (in Sterrs 1985: 53) which states that to assess the effectiveness of a tax, certain criteria are required, such as realization of goals, integration, and adaptation. The approach used in this research is a qualitative approach with a descriptive method. Data was collected through observation, documentation and interviews. The results of this study indicate that PMSE VAT collection has been going well but not yet fully effective because in certain years it did not reach the target due to several obstacles experienced by the Primary Tax Offce of West Bekasi, including inadequate infrastructure, and low awareness and knowledge of PMSE VAT.

Proportion of Agriculture, Industry and Services Sector to Value Added Tax Revenue in Low Income and Lower-Middle Income Countries: Rule of Law as a Moderating Variable

This study aims to determine how much the agricultural, industrial and service sectors affect Value Added Tax revenues in low and lower middle income countries with rule of law as moderating variable. The independent variables used in this study are the proportion of the agricultural sector to GDP, the proportion of the industrial sector to GDP, the proportion of the service sector to GDP, the dependent variable used is VAT revenue while the moderating variable is the rule of law. This study uses secondary data with a population of 27 countries with low and lower middle income in a span of seven years, from 2009 to 2015. The statistical method used in this study is quantitative method with multiple linear regression using panel-corrected standard error regression model. The results showed that before being moderated by the rule of law, the agricultural, industrial and service sectors had no effect on VAT revenues. But after being moderated by the rule of law, the agricultural, industrial and service sectors have a positive influence on VAT revenues. Thus, the government is expected to focus attention on the rule of law. Good rule of law will increase investor confidence in the existence of applicable laws and also related to property rights, law enforcement officers, courts and also low levels of crime and violence which ultimately increase tax revenues reflected in increased VAT revenues.

The Impact of Fiscal Policy on Households’ Expectation: Evidence from China’s Total Retail Sales of Consumer Goods

This study is based on the growing economic pressure to the downside that China experienced since COVID-19. This epidemic has weakened the country's financial capacity and lowered households’ consumption expectations. The paper explores the health spending, general government spending, VAT revenue, and total retail sales of consumer products. The core task of this study is to examine how fiscal policy affects consumption. The National Bureau of Statistics and the Ministry of Finance's data for the years 2020 to 2023 are chosen using the quantitative study methodology. According to the research results, it is concluded that increasing some special types of fiscal expenditure will play an important role in encouraging people to consume during the pandemic. Based on the aforementioned findings, it is helpful to suggest the following solutions and countermeasures. Governments should increase social security spending to ensure the basic needs of low-income groups are met, while also increasing medical spending to improve people's health and increase their willingness to consume.

MEASURING VAT EFFICIENCY IN VISEGRAD GROUP COUNTRIES

Value added tax represents one of the main tax forms, because it generates the most revenue and greatly contributes to the budgets of many countries. The purpose of this paper is to determine the VAT efficiency level in Visegrad Group countries (Czechia, Hungary, Poland and Slovakia) for the period between 1995 and 2020. The average VAT efficiency in the Visegrad region was 0.51, and this indicator improved after these economies joined the European Union. The results of this empirical research show that gross domestic product per capita, final consumption and value added tax revenue have a positive impact on VAT efficiency, as measured by the C-efficiency indicator. On the other hand, the results demonstrate that an increase in VAT rate lead to a lower level of VAT efficiency in the examined countries. Finally, the EU accession of the Visegrad region had positive implications for the productivity and efficiency of their VAT systems. The results of this study suggest that the governments of the Visegrad Group countries should focus on increasing the GDP per capita growth rate and final consumption to stimulate VAT revenue. Additionally, the policymakers of these countries can increase VAT revenue by expanding the tax base in order to avoid the negative effect that increasing the standard VAT rate has on VAT efficiency.

Impact of the alternative tax base measurement policy on the VAT revenue performance in the Indonesian agricultural sector

Informality issues and government distributional objectives cause the need for VAT special treatment for the agricultural sector. The treatment forms and resulting impacts vary, depending on each country's conditions and necessities. This study aims to estimate the impact of the alternative tax base measurement policies on the VAT revenue performance in the Indonesian agricultural sector. Using input-output table modeling, the authors found that the policy positively impacts the compliance level and VAT revenue in the agricultural sector but reduces the aggregate national VAT revenues and increases the VAT burden that the agricultural sector entrepreneurs must bear. The normal VAT mechanism is preferred for the long-term goal, but the alternative policy is still needed during the transition period.

Application of data mining techniques for VAT-Registered Business compliance

World Bank recommends that Indonesia lower the turnover threshold required to be a VAT-Registered Business from Rp. 4,8 billion to Rp. 600 million to increase VAT-Registered Businesses numbers which will also increase VAT revenue. The number of VAT-Registered Businesses will be significantly increased, which will push Directorate General of Taxes to determine the correct audit priority because it is impossible to audit all taxpayers. This study aims to form a prediction model for formal compliance of VAT-Registered Businesses in the Sampit Tax Office towards 1270 VAT-registered Businesses as of December 31, 2019, which are classified as low-risk VAT-Registered Businesses. The prediction model will be useful for determining audit priorities for certain taxpayers. This study uses a qualitative method using the RapidMiner application and decision tree technique in making prediction models for VAT-Registered Business compliance. The model made has Prediction Efficiency of 67,9%, reduction in Examination Effort by 63.67%, and Strike Rate of 85.99%. The model made is used to predict new VAT-Registered Business data which registered in 2020 and predicts 76 VAT-Registered Businesses will be compliant and 7 VAT-Registered Businesses will not be compliant

ANALISIS POTENSI PAJAK PERTAMBAHAN NILAI (PPN) TERHADAP LAYANAN OVER THE TOP (OTT) LUAR NEGERI DI INDONESIA

Digital evolution now affects almost all aspects of people’s lives. The emergence of products resulting from technological developments was responded to very positively by the community. One of them is digital-based entertainment, namely streaming services with a fairly high number of viewers. The positive direction of growth in digital entertainment consumption is trying to be linked to tax revenues, especially the type of VAT to see how much it contributes to the state. Digital entertainment that can be marketed around the world via a network called over the top initially poses a dilemma of collecting its contributions, so various strategies have been devised to solve this dilemma. Tracing the potential VAT revenue on digital entertainment consumption in Indonesia is the main object of this study. Research by the qualitative trying to probe deeper onto the ground of the VAT through the public interest in accessing digital entertainment. This study took advantage of the primary data of the views of experts in the field of taxation and supported secondary data. The results of this study indicate that the high interest of the public in using digital entertainment, which is indicated by the rapid growth of access to digital services in Indonesia, is a great potential for state revenues that can be collected through taxation. As a new source of income in the VAT type of tax sector, the use of digital entertainment in Indonesia can be optimized for VAT collection and deposit through the enactment of PMK No. 60/PMK.030/2022 and PER-12/PJ/2020. That has not been optimized in the field of supervision and the right to fulfill a sense of fairness for all taxpayers in Indonesia is a note and evaluation for authority taxation in their bid to the undertaking of duty calculated the contributions to digital providers foreign in Indonesia.

An Analysis of the Value Added Tax (Vat) Gap in Zambia

The aim of this study was to empirically examine the effect of the Zambian VAT administrationon tax revenue by analyzing the VAT gap in Zambia. The study attempted to assess from empirical evidence if there is room for the revenue authorities to enhance VAT revenue collection without increasing the rate. The data used in this study was time series data sourced from the Zambia Revenue Authority database of 2020. The research used a data collection guide that sought to collect data on VAT and any other relevant information regarding VAT gaps and VAT administration. This study used a population of the totality of the Zambian economy which included all the existent revenue streams of the Zambian government. The study employed the multiple regression model and used descriptive statistics and correlation analysis. Data collected was reviewed for a period of over 10 years (2009 to 2019).The study concludes that deferring VAT and Penalties on VAT for non-compliance had no effect on the VAT collected under the period of review. Indicating that low willingness by taxpayers to pay correct taxes on time. Additionally, the study concludes that the VAT policy gap has no effect on VAT revenue in the period under review. Indicating that ZRA should improve measures of VAT enforcement. Thus, the study recommends that ZRA should make deliberate efforts to improve its enforcement by having a dedicated Enforcement Unit for Domestic taxes just like the one assigned to customs. Further, since the payer of VAT is the final consumer, ZRA should encourage voluntary tax compliance among final consumers by intensifying the demand a receipt campaign as well as increasing the education on the benefits of tax compliance to the nation’s development. Further, ZRA should expedite the process of fiscalization i.e. the mandatory issuance of fiscal receipts by all VAT registered suppliers.

Procenjivanje PDV efikasnosti u zemljama Beneluksa

The relevance of value added tax is reflected in the generation of a significant amount of revenue and the suppression of tax evasion. The purpose of the research is aimed at assessing collected revenues and measuring the efficiency of VAT revenue collection in the Benelux countries (Belgium, the Netherlands and Luxembourg) for the period 2011-2020. years. Empirical research results indicate that the average VAT efficiency was 59.84% in the observed countries. where the highest degree of efficiency was recorded in Luxembourg, and the lowest value in Belgium. Panel regression results show that economic growth, final consumption, government expenditures and VAT revenues have a positive effect on VAT efficiency in the observed countries. At the same time, variables such as unemployment and inflation, as well as the standard VAT rate, have a negative effect on the efficiency of VAT revenue. The obtained empirical findings can be of help to economic policy makers in the analyzed countries when profiling and adjusting tax policy from the point of view of value added tax.

VAT Revenue and Economic Growth in the Middle East and North Africa Region: Evidence from Panel Data Analysis

The Middle East and North Africa (MENA) region countries are characterized by a great diversification in the level of political, economic, and socio-political principles in the world. This diversity applies also to their tax regime, particularly VAT. Taxes are the primary source of funding for the government and public expenditures by generating considerable revenue to fund the national product. MENA region countries, like any other country with a population that typically keeps increasing throughout time, tend to boost their economic growth to ensure higher living standards, higher real income, and innovation. This study examines the impact of important drivers of MENA countries that affects GDP growth, based on a large sample of 14 countries from 2010–2020, information collected from unit cross-sections (country), and over time. Then, panel regression is the appropriate statistical method to analyze two-dimensional data, through a fixed effect panel data analysis. The sample of countries has been chosen based on pre-established criteria reflecting the availability of data for the study period. Collected data have been analyzed using the software STATA version 17. The findings obtained prove a positive significant VAT impact on economic growth for the sample of MENA region countries. This study helps policymakers in assessing and reviewing their tax policy related to VAT to maximize their source of revenue generated by this tax. The findings of this study supported that the unemployment rate and CPI decrease GDP growth, whereas VAT leads to an increase of economic growth in this region. This proves the importance of VAT tax in raising government revenue.

An Evaluation of Vat Revenue Efficiency from a Macroeconomic Perspective: Determinants, Effects and Policy Proposals. Recent Evidence from Greece

An Evaluation of Vat Revenue Efficiency from a Macroeconomic Perspective: Determinants, Effects and Policy Proposals. Recent Evidence from Greece

Value-Added Tax Revenue Transfers and Regional Social Development: Evidence from Nigeria

The gross social underdevelopment in Nigerian communities and villages is the underlying reason for investigating the effectiveness of VAT revenue transfers to states and local governments in providing the necessary social and community development services to meet the needs of the entire populace. This study examined the impact of VAT revenue devolution on social development in Nigeria from 1995 to 2021, with a focus on community welfare, making use of secondary data retrieved from the Central Bank of Nigeria’s statistical archive. In analyzing the data, we used an ex post facto research design and a cross-sectional econometric approach. The study examined the relationship between variables and included a trend analysis, a causality evaluation, and a regression analysis to determine the impact of VAT transfer on social welfare in Nigeria. According to the findings, VAT transfer to states has a positive relationship with social development, and the effect is both significant and beneficial at the 0.01 level. Local governments’ share of VAT collection, on the other hand, has an intangible positive effect on social development at the 0.05 degree of importance. As a result, we concluded that VAT revenue autonomy is now required in Nigeria. The study strongly advocates for the total transfer of revenue receipts to states and local governments for the benefit of society.

Household consumption expenditures and the performance of provincial VAT revenue in Indonesia

<p>This study examines the relationship between household consumption expenditures and the performance of VAT revenue at the provincial level in Indonesia during 2011-2019. Household consumption is divided into food and non-food contests. The PPN performance indicator is shown by the PPN C-efficiency ratio which is calculated from the VAT revenue for each province divided by the VAT rate multiplied by the Consumption GRDP. The results of the regression using the fixed-effect panel data estimation model show a positive and significant relationship between household consumption and VAT revenue in the province. This means that increasing aggregate household consumption, both food and non-food consumption, will increase the VAT-C efficiency ratio. The results also show that an increase in the consumer price index that is not followed by an increase in income will decrease VAT performance. Furthermore, the increase in the share of the tertiary sector as a direction of structural transformation will weaken the performance of VAT receipts. This is possible because the tertiary sector is still dominated by the service sector which is not subject to VAT and the trade sector in which there is a high level of informality.</p>