Blueprint for Reform of VAT Rates in Europe

Feria, Rita de la

doi:10.2139/ssrn.3372383

Cited by 4 publications

(4 citation statements)

References 4 publications

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“…t= MD SED (8) Where (MD) represent the difference in means between pre-and post-event, and (SED) is the standard error of the difference in mean returns before and after VAT introduction. Finally, the Sobel test is used to quantify the significance of mediation effects calculated using Eq.…”

Section: Methodological Designmentioning

confidence: 99%

“…Further examination of existing literature reveals a pattern: while several studies have delved into VAT's operational and financial aspects within the banking sector and beyond, few have directly linked VAT policy changes to the nuanced indicators of stock market behaviour. For instance, research by Management et al (2021) [7] and La Feria et al (2024) [8] explored the general economic outcomes of VAT adjustments, noting impacts on consumer behaviour and business operating costs. Yet, they did not extend their analysis to the stock market's response to such fiscal policies.…”

Section: Introductionmentioning

confidence: 99%

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Evaluating the Influence of Value-Added Tax Policy Changes on the Liquidity and Performance of Banking Sector Stocks: An Event Study Analysis

Al-Otaibi,

Nor,

Yusri

2024

Preprint

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This paper aims to provide an evaluation of how Value Added Tax (VAT) policy alterations influence market liquidity, trading volume, and stock performance. To fill the existing literature gap on the direct effect of (VAT) adjustments on stock market dynamic, particulate within the banking industry. The study employs an event study methodology to analyse the immediate and medium-term effects on bank stocks listed in markets subject to a (VAT) adjustments. The core of the study analysis is anchored around two pivotal events, the initial application of (VAT) on 1st January 2018, and the subsequent (VAT) increase to 15% on 1st July 2020 using MATLAB R2022b. The study analysis encompasses the period immediately before and after the introduction and subsequent increase (VAT) in kingdom Saudi Ariba (KSA) employing an eleven sample comprises the (KSA) largest banks with a ±7 days window period from the event. The analysis revels that the imposition of 5% (VAT) lead a substation downturn in trading volume and stock returns of 9.5%, and 39.5%, subsequently. While when the (VAT) was increased by 15% the market exhibited a mixed but ultimately positive response of 3.3% trading volumes increases and 128.7% average stock return recovery.

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Section: Methodological Designmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Evaluating the Influence of Value-Added Tax Policy Changes on the Liquidity and Performance of Banking Sector Stocks: An Event Study Analysis

Al-Otaibi,

Nor,

Yusri

2024

Preprint

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“…S237-S238). There is, however, substantial evidence to support the conclusion that the benefit of rate concessions is largely absorbed by suppliers and not passed on to final consumers (see for example Zu, 2017; Commission of the European Communities, 2003; de la Feria, 2015; Benzarti and Carloni, 2019). Proposals have been made in Australia for a general GST “holiday” (Gross, 2020; Lo, 2020).…”

Section: Goods and Services Tax/value-added Tax Deferral And Rate Changesmentioning

confidence: 99%

Does tax policy fit in the portfolio of COVID-19 responses?

Sadiq

Krever

2021

PAR

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Purpose Tax policymakers are currently navigating a path through a delicate dialectic of macro- and micro-level policy responses to the economic dislocation of the COVID-19 pandemic. The purpose of this paper is to examine initial tax measures that are aimed at helping taxpayers needing liquidity, solvency and income support. Design/methodology/approach This study undertakes a review of key tax policy responses of six jurisdictions across the globe that have similar tax regimes and virus mitigation strategies (albeit with different outcomes). Key initiatives implemented from February to April 2020 by Australia, Canada, New Zealand, Singapore, South Africa and the UK are examined. Findings This study indicates that tax concessions are a crude and mostly ineffective way of assisting individuals and enterprises in difficulty. In the longer term, if the crisis prompts desirable reforms such as extending the recognition of tax losses, the income tax system will emerge fairer and more efficient. Practical implications An investigation of the short-term reforms announced relating to asset write-offs, tax deferral, tax losses and goods and services tax/value-added tax rates in light of the liquidity, income support and stimulus objectives shows that in some cases the policies may have been misguided. The findings can be used by policymakers as the basis for designing better targeted alternative non-tax responses. Originality/value Jurisdictional responses to tax policy reforms during a modern period of significant economic dislocation have yet to be documented in the literature. Specifically, this paper highlights the limitations of tax policy initiatives as a response to financial hardship.

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“…Към настоящия момент няма цялостен научен анализ на временните изменения и допълнения на данъчни закони във връзка с кризи, въпреки че има отделни изследвания [3,4]. Това може да се обясни с факта, че обществото е все още в състояние на ограничение на редица права и е очевидно е необходимо време, за да се осмислят евентуалните мерки за преодоляване на негативните икономически последици, чието проявление ще се усеща тепърва.…”

Temporary Reduction of Vat Rates

Minkova¹,

Law²

2020

HBR

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Аннотация. Статията има за цел да изследва систематично и подробно извънредната ситуация поради пандемията от вируса corona и нейното въздействие върху бизнеса, заетостта и потреблението. Данъчното облагане може да бъде инструмент за упражняване на влияние върху икономическия растеж, който в резултат на кризата намалява. Но поради разнообразието на данъците -преки или косвени, пропорционални или прогресивни и др., съществуват различни начини за използване на данъчното облагане при решаването на икономически проблеми. Държавните органи трябва да направят избор, за да приложат най-добрите модели на временни законодателни промени при подпомагането на бизнеса и клиентите за справяне с кризата. Акцентът в статията е върху намалената ставка на ДДС. Според чл. 98 от Директива 2006/112/ЕО на Съвета от 28 ноември 2006 година относно общата система на данъка върху добавената стойност (ДДС), държавите членки могат да прилагат една или две намалени ставки само за доставки на стоки или услуги в категориите, посочени в приложение III. В България се прие ново законодателство, което предвижда временно намалени ставки за някои доставки. От една страна, въпросът е дали измененията са в съответствие с европейското право. От друга страна, трябва да проверим дали целите за подпомагане на бизнеса и потребителите могат да бъдат постигнати чрез намаляване на ставките на ДДС. В тази връзка изследването е насочено към сходни решения, взети от други държави членки, но в същото време показва различните подходи, предприети от тях. Сравнени са двете възможности -за намаляване на ставката за облагане на всички доставки на стоки и услуги за срок от 6 или 18 месеца или за намаляване на ставката за отделни сектори, които са приоритетни за съответната държава.Ключови думи: Корона вирус пандемия, бизнес, заетост, потребление, намалена ДДС ставка, европейско право, временно решение, доставки на стоки и услуги.

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Blueprint for Reform of VAT Rates in Europe

Cited by 4 publications

References 4 publications

Evaluating the Influence of Value-Added Tax Policy Changes on the Liquidity and Performance of Banking Sector Stocks: An Event Study Analysis

Evaluating the Influence of Value-Added Tax Policy Changes on the Liquidity and Performance of Banking Sector Stocks: An Event Study Analysis

Does tax policy fit in the portfolio of COVID-19 responses?

Temporary Reduction of Vat Rates

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