Digitalization to Improve Tax Compliance : Evidence from VAT e-Invoicing in Peru /

This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent...

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Détails bibliographiques
Auteur principal: Bellon, Matthieu
Autres auteurs: Chang, Jillie, Dabla-Norris, Era, Khalid, Salma
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2019.
Collection:IMF Working Papers; Working Paper ; No. 2019/231
Accès en ligne:Full text available on IMF
Description
Résumé:This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform's positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization.
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Description matérielle:1 online resource (36 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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