Is VAT administration system efficient?

ǂthe ǂcase of the Czech

Hana Zídková (Author), Tomáš Vrána (Author)

Abstract

This paper is focused on the efficiency of VAT collection under the standard credit invoice method. It discusses several approaches on how to evaluate the efficiency of the VAT system. The authors create their own indicator called the C-Coefficient that determines how many times must one unit of currency be checked by the financial authority to collect it into public budgets. The C-Coefficient is calculated from the data on VAT revenues and total VAT paid on all taxable supplies performed in the economy. The concrete results are shown for the Czech Republic for the period 2005 to 2018. The C-Coefficient reaches the values between 7.92 and 11.56, meaning that in the most efficient year (2018) the tax authorities had to inspect each collected CZK more than 7 times, whereas in the least efficient year (2008) they had to audit each collected CZK more than 11 times. Authors also discuss what influences the C-Coefficient. Among important factors are measures against VAT fraud, especially the specific reverse charge, as well as the number of VAT payers in the production and distribution chain and the difference between the average VAT rates applicable on final and intermediate consumption.

Keywords

C-Coefficient;definitive VAT system;final consumption;intermediate consumption;reverse charge;VAT efficiency;collection efficiency;Czech Republic;

Data

Language:	English
Year of publishing:	2020
Typology:	1.01 - Original Scientific Article
Organization:	UL FU - Faculty of Administration
UDC:	35:336.226.322(437.31)
COBISS:	67511555
ISSN:	2591-2240
Views:	525
Downloads:	100
Average score:	0 (0 votes)
Metadata:

Other data

Secondary language:	Slovenian
Secondary title:	Ali je sistem upravljanja DDV učinkovit?
Secondary abstract:	Prispevek se osredotoča na učinkovitost pobiranja DDV po standardni metodi kreditnega računa. Obravnavnih je več pristopov za ocenjevanje učinkovitost sistema DDV. Avtorja sta oblikovala lasten kazalnik, imenovan koeficient C, ki določa, kolikokrat mora finančni organ preveriti posamezno valutno enoto, preden jo razporedi v javne proračune. Koeficient C je izračunan iz podatkov o prihodkih iz naslova DDV in skupnem plačanem DDV za vse obdavčljive dobave v gospodarstvu. Prikazani so konkretni rezultati za Češko za obdobje med letoma 2005 in 2018. Koeficient C dosega vrednosti med 7,92 in 11,56, kar pomeni, da so morali davčni organi v najučinkovitejšem letu (2018) vsako pobrano češko krono preveriti več kot sedemkrat, v najmanj učinkovitem letu (2008) pa več kot enajstkrat. Avtorja razpravljata tudi o tem, kaj vpliva na koeficient C. Med pomembnimi dejavniki so ukrepi proti goljufijam na področju DDV, zlasti posebna obrnjena davčna obveznost, pa tudi število zavezancev za DDV v proizvodni in distribucijski verigi ter razlika med povprečnimi stopnjami DDV, ki veljajo za končno in vmesno potrošnjo.
Secondary keywords:	davek na dodano vrednost;koeficient C;dokončni sistem;končna potrošnja;vmesna potrošnja;obrnjena davčna obveznost;učinkovitost;učinkovitost pobiranja;Češka;
Type (COBISS):	Article
Source comment:	Povzetek v slov. na koncu publikacije, str. 202.
Pages:	str. 121-134, 202
Volume:	ǂVol. ǂ18
Issue:	ǂno. ǂ2
Chronology:	Nov. 2020
DOI:	10.17573/cepar.2020.2.06
ID:	13163757