VAT incidence in real VAT systems
成果类型：
Article
署名作者：
Brusco, Giacomo; Velayudhan, Tejaswi
署名单位：
Eberhard Karls University of Tubingen; University of California System; University of California Irvine
刊物名称：
JOURNAL OF PUBLIC ECONOMICS
ISSN/ISSBN：
0047-2727
DOI：
10.1016/j.jpubeco.2025.105447
发表日期：
2025
关键词：
摘要：
This paper studies the price impacts of Value Added Tax (VAT) in the presence of size-based exemptions, which are set relatively high in the firm-size distribution in developing contexts. In addition to the standard determinants of tax incidence, we show that pass-through of VAT to consumer prices will depend on the substitutability of registered and unregistered varieties of taxed goods, on pass-through at upstream stages, and on the extent of segregation between registered and unregistered supply chains. The exemption can also distort the quality of goods produced. We show that these mechanisms are empirically important in the context of a VAT in India, where those who consume at unregistered firms nevertheless bear some of the tax burden.
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