Taxes are fundamental for the development of a country, and in Ecuador, the taxes in the year 2018 represented 43.4% of the General State Budget (PGE). In the province of Pastaza, the collection for ...2018 was 13,034,525 dollars, of which 6,058,603.55 dollars were collected by VAT, representing 46.5% of the total collection. The importance of this research work is to analyze the evolution and results achieved in the timely fulfillment of VAT in the province of Pastaza, since it is essential for the Tax Administration to ensure the best timely and correct compliance in the presentation and payment of VAT, that allows to guarantee and maintain an efficient collection.
We examine value added tax (VAT) non‐compliance in the European Union (EU) car market. This issue is of paramount importance because of the loss of VAT revenue, the profound distortion of market ...mechanisms, and the dangerous variety of fraudulent schemes employed. In addition to the usual VAT fraudulent schemes on intra‐community trade, the special regimes, and the different regulations for the sale of motor vehicles in the EU member states per se, favour non‐compliance in the car market. Non‐compliance also takes advantage of the lack of adequate and prompt information exchange among the tax administrations of different countries and, within each country, between the tax administrations and their departments responsible for motor vehicles. We highlight the fact that the current measures are insufficient to fight VAT non‐compliance and that the new rules proposed in the ‘definitive VAT system’ are inadequate to control the proliferation of scams in the car market. Accordingly, we suggest more substantial measures: well‐targeted and prompt cross‐checks through archives and databases, and the monitoring of their effectiveness; electronic invoices; real‐time exchanges of information between the different tax and transport authorities; and increased harmonisation of the special VAT schemes that aim to eliminate one of the most exploited opportunities for illicit gain, to the detriment of the EU member states.
Policy interaction is an important way to deal with increasingly complex environmental problems. This paper examines the investment-related tax cuts and the policy interaction with environmental ...regulation on firms' emission reduction strategies. Taking China's value-added tax (VAT) reform as a quasi-natural experiment and considering the interaction with the emission reduction target policy, our difference-in-differences estimation shows that: the average effect of the VAT reform reduces firms' sulfur dioxide (SO2) emission intensity by 16.6%, due to the adoption of emissions reduction strategies in the production processes; the interaction effect between the VAT reform and environmental regulation incentivizes firms to additionally reduce SO2 emission intensity, due to the adoption of both production processes and end-of-pipe reduction strategies. Our findings are more evident for firms with tight financial constraints. Overall, this paper reveals the micro-mechanisms of how the tax policies incentivize firms to choose emission reduction strategies and highlights the importance of the interaction effects between environmental and non-environmental policies, thus providing implications for the policy mix of environmental regulation and tax-cut incentives to promote pollution reduction and improve business performance.
The research aimed to analyze the influence of the standard VAT rate and the number of existing rates on the efficiency of VAT collection in the old and new member states of the European Union. The ...Student's t-test was applied to assess the significance of the model coefficients. P-values< 0.05 provide evidence that the parameter under test is significant. The study's conclusion is that a tax system containing a small number of reduced VAT rates and one relatively low standard rate of this tax is a system that will be less exposed to danger from unscrupulous entities practicing tax fraud.
•Computed tomography contrast phase affects measurements of body composition.•Computed tomography assessed myosteatosis is heavily influenced by contrast phase.•Significant heterogeneity exists in ...the methods of assessing body composition.•Measurements of body composition should only be compared in the same contrast phase.
Significant variability exists in the contrast phases applied during computed tomography (CT) studies when assessing morphometric measurements of muscle area (CT-assessed sarcopenia), density (CT-assessed myosteatosis), and visceral adipose tissue area (CT-assessed visceral obesity). This study explored the impact of contrast phase timing on changes in morphometric measurements of body composition.
This single-center retrospective cohort study included 459 patients undergoing a multiphase CT scan. Morphometric measurements were obtained at the third lumbar vertebra level. Patients were classified as sarcopenic, myosteatotic, or visceral obese using pre-defined cutoff values. The intra-class correlation coefficient was used to assess correlations across different enhancement phases, and Cohen's κ measured the inter-enhancement agreement for sarcopenia, myosteatosis, and visceral obesity.
Significant differences were observed in mean visceral adipose tissue area, muscle density, and muscle area (p<0.001). The intra-class correlation coefficient between unenhanced and arterial phases was 0.987 (95% confidence interval CI, 0.759-0.996) for adipose tissue, 0.995 (95% CI, 0.989-0.997) for muscle area, and 0.850 (95% CI, 0.000-0.956) for muscle density. However, when morphometric measurements were categorized using predefined cutoffs, the κ agreement was considerably lower, particularly for CT-assessed myosteatosis, ranging from 0.635 (unenhanced to arterial) to 0.331 (unenhanced to late venous phase).
Different CT contrast phases induce small, but clinically significant, alterations in the measurements of muscle area, density, and visceral fat. Such minor changes can result in misclassification issues when fixed cutoff values are used to diagnose myosteatosis with computed tomography. This underscores the importance of reporting absolute values and the specific contrast phase used in future studies.
Economic entities may register, for VAT purposes, before or after the start of economic activity. In practice, for taxable persons registered for VAT purposes, situations may arise that lead to the ...cancellation of the VAT code. These taxpayers may be re-registered as value added tax payers if they meet certain conditions. That is why we have presented the fiscal and accounting effects regarding the cancellation of the VAT code, on the date of cancellation, in the period in which the code is canceled as well as from the date of re-registration for VAT purposes. The case studies present the situation of a taxpayer, supplier, in the three periods, but also the effects on the taxpayer-client of the person who has the VAT code canceled and subsequently regained it.
The determinants of compliance VAT gap Cuceu, Ionuţ Constantin; Florescu, Decebal Remus; Văidean, Viorela Ligia
The journal of risk finance,
03/2024, Volume:
25, Issue:
2
Journal Article
Peer reviewed
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.
This paper examines the effect of how firms' energy intensity is affected by China's value-added tax reform, which provides permanent tax incentives for firms to invest in fixed assets. Using the ...difference-in-differences method, a unique firm-level data set is employed to examine the impact of VAT reform on firms' energy intensity. The results show that VAT reform significantly reduces firms' coal intensity by approximately 9%. There is a greater decrease in coal intensity for large-scale firms, firms in energy-intensive industries, and private firms after the reform. By encouraging firms to invest in fixed assets and improve output, this reform achieves an energy-saving effect. Our results shed new light on the effect of tax policy and can help inform the development of energy policies.
•Capital taxation incentives significantly decrease firms' energy intensity.•We exploit a quasi-experimental VAT reform using a DID approach.•A comprehensive unique data set is used to solve the selection bias problem.•VAT reform mainly improves energy efficiency by increasing investments.
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