Is VAT administration system efficient? : the case of the Czech

Zídková, Hana (author), Vrána, Tomáš (author)

This paper is focused on the efficiency of VAT collection under the standard credit invoice method. It discusses several approaches on how to evaluate the efficiency of the VAT system. The authors create their own indicator called the C-Coefficient that determines how many times must one unit of currency be checked by the financial authority to collect it into public budgets. The C-Coefficient is calculated from the data on VAT revenues and total VAT paid on all taxable supplies performed in the economy. The concrete results are shown for the Czech Republic for the period 2005 to 2018. The C-Coefficient reaches the values between 7.92 and 11.56, meaning that in the most efficient year (2018) the tax authorities had to inspect each collected CZK more than 7 times, whereas in the least efficient year (2008) they had to audit each collected CZK more than 11 times. Authors also discuss what influences the C-Coefficient. Among important factors are measures against VAT fraud, especially the specific reverse charge, as well as the number of VAT payers in the production and distribution chain and the difference between the average VAT rates applicable on final and intermediate consumption.

• Language: English
• Keywords: C-Coefficient, definitive VAT system, final consumption, intermediate consumption, reverse charge, VAT efficiency, collection efficiency, Czech Republic
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: FU - Faculty of Administration
• Publication status: Published
• Publication version: Version of Record
• Year: 2020
• Number of pages: Str. 121-134
• Numbering: Vol. 18, no. 2
• PID: 20.500.12556/RUL-128649
• UDC: 35:336.22(437.31)
• ISSN on article: 2591-2240
• DOI: 10.17573/cepar.2020.2.06
• COBISS.SI-ID: 67511555

Note

Povzetek v slov. na koncu publikacije, str. 202.

• Publication date in RUL: 22.07.2021

Record is a part of a journal

• Title: Central European public administration review
• Shortened title: CEPAR
• Publisher: Fakulteta za upravo
• ISSN: 2591-2240
• COBISS.SI-ID: 293849600

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.
• Licensing start date: 08.10.2020

Secondary language

• Language: Slovenian
• Title: Ali je sistem upravljanja DDV učinkovit? : primer Češke

Abstract

Prispevek se osredotoča na učinkovitost pobiranja DDV po standardni metodi kreditnega računa. Obravnavnih je več pristopov za ocenjevanje učinkovitost sistema DDV. Avtorja sta oblikovala lasten kazalnik, imenovan koeficient C, ki določa, kolikokrat mora finančni organ preveriti posamezno valutno enoto, preden jo razporedi v javne proračune. Koeficient C je izračunan iz podatkov o prihodkih iz naslova DDV in skupnem plačanem DDV za vse obdavčljive dobave v gospodarstvu. Prikazani so konkretni rezultati za Češko za obdobje med letoma 2005 in 2018. Koeficient C dosega vrednosti med 7,92 in 11,56, kar pomeni, da so morali davčni organi v najučinkovitejšem letu (2018) vsako pobrano češko krono preveriti več kot sedemkrat, v najmanj učinkovitem letu (2008) pa več kot enajstkrat. Avtorja razpravljata tudi o tem, kaj vpliva na koeficient C. Med pomembnimi dejavniki so ukrepi proti goljufijam na področju DDV, zlasti posebna obrnjena davčna obveznost, pa tudi število zavezancev za DDV v proizvodni in distribucijski verigi ter razlika med povprečnimi stopnjami DDV, ki veljajo za končno in vmesno potrošnjo.

• Keywords: koeficient C, dokončni sistem DDV, končna potrošnja, vmesna potrošnja, obrnjena davčna obveznost, učinkovitost DDV, učinkovitost pobiranja, Češka

Projects

• Funder: Other - Other funder or multiple funders
• Funding programme: Internal Grant Agency of University of Economics, Prague
• Project number: F1/7/2019
• Name: Economic and institutional aspects of public finance

• Funder: Other - Other funder or multiple funders
• Funding programme: Faculty of Finance and Accounting at the University of Economics, Prague
• Project number: IP 100040