The Mexican Value-Added Tax (Vat): Characteristics, Evolution, and Methodology for Calculating the Base

42 Pages Posted: 15 Feb 2006

See all articles by Carlos Aguirre

Carlos Aguirre

Escuela Politécnica Superior, Universidad Autónoma de Madrid

Parthasarathi Shome

International Tax Research and Analysis Foundation; London School of Economics - Law School

Date Written: March 30, 1987

Abstract

The value-added tax (VAT) is often a major component of national fiscal structures. While its effects on allocative efficiency, inflation, income distribution, and tax administration have been addressed, little work exists on the theoretical base of a VAT, given its structure. This is essential for knowing how much of the base is actually taxed. Using Mexican national accounts and input-output tables, this paper develops a methodology for calculating the theoretical base of the Mexican VAT for 1980 and 1983 (two years whose individual VAT structures were considerably different). The method is applicable to other VAT systems as well.

JEL Classification: 3212

Suggested Citation

Aguirre, Carlos and Shome, Parthasarathi, The Mexican Value-Added Tax (Vat): Characteristics, Evolution, and Methodology for Calculating the Base (March 30, 1987). IMF Working Paper No. 87/21, Available at SSRN: https://ssrn.com/abstract=884641

Carlos Aguirre (Contact Author)

Escuela Politécnica Superior, Universidad Autónoma de Madrid ( email )

Campus de Cantoblanco
Ctra de Colmenar Km 16
28049
Spain

Parthasarathi Shome

International Tax Research and Analysis Foundation

London School of Economics - Law School

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom

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