Matthews, Kent Gerard Patrick ORCID: https://orcid.org/0000-0001-6968-3098 2003. VAT evasion and VAT avoidance: Is there a European Laffer curve for VAT? International Review of Applied Economics 17 (1) , pp. 105-114. 10.1080/713673162 |
Abstract
This paper estimates the VAT revenue maximising rate of VAT for the European Union for given conditions of non-compliance and other black economy transactions. It estimates a Laffer curve for the standard rate of VAT using a pooled sample of data of revenue statistics for 14 countries in the EU. The results confirm that the efficiency of the VAT system declines as the VAT rate increases. The decline in efficiency is due to a mixture of a reduction in the VAT base, and VAT evasion and avoidance. As a result of the single market, the EU Commission has proposed a common or closely converged rate of VAT within Europe. The actual common rate of VAT has yet to be decided. This paper contributes to this policy debate.
Item Type: | Article |
---|---|
Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Subjects: | H Social Sciences > HJ Public Finance J Political Science > JN Political institutions (Europe) |
Publisher: | Taylor & Francis (Routledge) |
ISSN: | 0269-2171 |
Last Modified: | 24 Oct 2022 09:58 |
URI: | https://orca.cardiff.ac.uk/id/eprint/42759 |
Citation Data
Cited 20 times in Scopus. View in Scopus. Powered By Scopus® Data
Actions (repository staff only)
Edit Item |