This paper sets out some tools for understanding the performance of the value added tax (VAT). Applying a decomposition of VAT revenues (as a share of GDP) to the universe of VATs over the last twenty years, it emerges that developments have been driven much less by changes in standard rates than by changes in ‘C-efficiency’ (an indicator of the departure of the VAT from a perfectly enforced tax levied at a uniform rate on all consumption). Decomposing C-efficiency into a ‘policy gap’ (in turn divided into effects of rate differentiation and exemption) and a ‘compliance’ gap (reflecting imperfect implementation), results pieced together for EU members suggest that the former are in almost all cases far larger than the latter, with rate differentiation and exemptions playing roles that differ quite widely across countries.

This paper sets out some tools for understanding the performance of the value added tax (VAT). Applying a decomposition of VAT revenues (as a share of GDP) to the universe of VATs over the last twenty years, it emerges that developments have been driven much less by changes in standard rates than by changes in ‘C-efficiency’ (an indicator of the departure of the VAT from a perfectly enforced tax levied at a uniform rate on all consumption). Decomposing C-efficiency into a ‘policy gap’ (in turn divided into effects of rate differentiation and exemption) and a ‘compliance’ gap (reflecting imperfect implementation), results pieced together for EU members suggest that the former are in almost all cases far larger than the latter, with rate differentiation and exemptions playing roles that differ quite widely across countries.

This book integrates legal, economic, and administrative materials about value added tax. Its principal purpose is to provide comprehensive teaching tools - laws, cases, analytical exercises, and questions drawn from the experience of countries and organizations from all areas of the world. It also serves as a resource for tax practitioners and government officials that must grapple with issues under their VAT or their prospective VAT. The comparative presentation of this volume offers an analysis of policy issues relating to tax structure and tax base as well as insights into how cases arising out of VAT disputes have been resolved. The authors have expanded the coverage to include new VAT related developments in Europe, Asia, Africa and Australia. A chapter on financial services has been added as well as an analysis of significant new cases.

Up the close and down the stair, Up and down with Burke and Hare. Burke's the butcher, Hare's the thief, Knox the man who buys the beef. —anonymous children's song On Halloween night 1828, in the West Port district of Edinburgh, Scotland, a woman sometimes known as Madgy Docherty was last seen in the company of William Burke and William Hare. Days later, police discovered her remains in the surgery of the prominent anatomist Dr. Robert Knox. Docherty was the final victim of the most atrocious murder spree of the century, outflanking even Jack the Ripper's. Together with their accomplices, Burke and Hare would be accused of killing sixteen people over the course of twelve months in order to sell the corpses as "subjects" for dissection. The ensuing criminal investigation into the "Anatomy Murders" raised troubling questions about the common practices by which medical men obtained cadavers, the lives of the poor in Edinburgh's back alleys, and the ability of the police to protect the public from cold-blooded murder. Famous among true crime aficionados, Burke and Hare were the first serial killers to capture media attention, yet The Anatomy Murders is the first book to situate their story against the social and cultural forces that were bringing early nineteenth-century Britain into modernity. In Lisa Rosner's deft treatment, each of the murder victims, from the beautiful, doomed Mary Paterson to the unfortunate "Daft Jamie," opens a window on a different aspect of this world in transition. Tapping into a wealth of unpublished materials, Rosner meticulously portrays the aspirations of doctors and anatomists, the makeshift existence of the so-called dangerous classes, the rudimentary police apparatus, and the half-fiction, half-journalism of the popular press. The Anatomy Murders resurrects a tale of murder and medicine in a city whose grand Georgian squares and crescents stood beside a maze of slums, a place in which a dead body was far more valuable than a living laborer.

Does the design of a tax matter for growth? Assembling a novel dataset for 30 OECD countries over the 1970-2016 period, this paper examines whether the value added tax (VAT) may have different effects on long-run growth depending on whether it is raised through the standard rate or through C-efficiency (a measure of the departure of the VAT from a perfectly enforced tax levied at a single rate on all consumption). Our key findings are twofold. First, for a given total tax revenue, a rise in the VAT, financed by a fall in income taxes, promotes growth only when the VAT is raised through C-efficiency. Second, for a given VAT revenue, a rise in Cefficiency, offset by a fall in the standard rate, also promotes growth. The implication is thus that in OECD countries broadening the VAT base through fewer reduced rates and exemptions is more conducive to higher long-run growth than a rise in the standard rate.

The IMF Fiscal Affairs Department’s Revenue Administration Gap Analysis Program (RA-GAP) assists revenue administrations from IMF member countries in monitoring taxpayer compliance through tax gap analysis. The RA-GAP methodology for estimating the VAT gap presented in this Technical Note has some distinct advantages over commonly used methodologies. By using a value-added approach to estimating potential VAT revenues, as compared to the more traditional final consumption approach used by most countries undertaking VAT gap estimation, the RA-GAP methodology can provide VAT compliance gap estimates on a sector-by-sector basis, which assists revenue administrations to better target compliance efforts to close the gap. In addition, the RA-GAP methodology uses a unique measurement for actual VAT revenues, which isolates changes in revenue performance that might be due to cash management (e.g., delays in refunds) from those due to actual changes in taxpayer compliance.

Tax revenues pay for many public services, including roads, health care, and education. However, it has become a contentious political issue of public debate. In this volume, Stephen Smith explains its history and its main principles; arguing that we'd all benefit from an understanding of the role of taxation in society.