VAT

Administrative tax and audit data from Rwanda shows that e-invoicing can help increase tax compliance if designed and implemented efficiently and alongside an effective tax audit strategy.

Informality, compliance costs, and weak administrative capacity all constrain the effectiveness of VAT in lower-income countries. However, it is a crucial source of revenue that is better than the alternatives, so governments should focus on reforms ...

When thinking about VAT incidence in countries with high registration thresholds it is important to consider the impact on VAT-unregistered firms. Their interaction with the VAT system matters for progressivity and introduces distortionary effects on...

Mandatory adoption of VAT e-invoicing in Peru increased reported transactions and improved tax compliance

A one-off demonetisation led to a shift to electronic payments, which in turn increased tax compliance

The adoption of sales registration machines in Ethiopia substantially increased tax revenue, but by less than expected due to taxpayer responses

A quarter of Ugandan firms appear to consistently make costly mistakes, with potentially far-reaching consequences for theory and policy design

Value-added tax (VAT) can facilitate tax enforcement by generating paper trails on transactions between firms

Rising local protectionism reduces interprovincial trade and manufacturing exports, and increases ’inward-looking’ sourcing by local intermediaries