The Efficiency of Vat Implementation: A Comparative Study of Central and Eastern European Countries in Transition

18 Pages Posted: 15 Feb 2006

Date Written: July 1996

Abstract

This paper presents calculations of the efficiency with which value-added taxes are collected in five transition economies in Central and Eastern Europe. Actual VAT revenues in 1994 are compared with those that would have resulted if the statutory VAT rates had been applied without any revenue leakage. The five countries fall into two broad groups, one exhibiting relatively high collection efficiency, and the other relatively low efficiency. While lack of detailed information on tax rules and consumption patterns makes definitive conclusions difficult, the impact of exemptions is shown to likely strengthen the comparative results.

JEL Classification: H250, H260

Suggested Citation

Jack, William G., The Efficiency of Vat Implementation: A Comparative Study of Central and Eastern European Countries in Transition (July 1996). IMF Working Paper No. 96/79. Available at SSRN: https://ssrn.com/abstract=882976

William G. Jack (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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