Exploring determinants of VAT gaps using structural equation models: a MIMIC approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43926081" target="_blank" >RIV/62156489:43110/24:43926081 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.17979/ejge.2024.13.2.9940" target="_blank" >https://doi.org/10.17979/ejge.2024.13.2.9940</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.17979/ejge.2024.13.2.9940" target="_blank" >10.17979/ejge.2024.13.2.9940</a>
Alternative languages
Result language
angličtina
Original language name
Exploring determinants of VAT gaps using structural equation models: a MIMIC approach
Original language description
This study explores the estimation of the VAT gap using the Multiple Indicators and Multiple Causes (MIMIC) model, a specific type of structural equation model. The VAT gap, a significant indicator of tax revenue loss and inefficiency in VAT collection, is treated as a latent variable driven by various causes and reflected through specific indicators. Drawing on data from European countries, the model incorporates variables such as economic openness, government spending, corruption perceptions, and the e-government development index, each serving as proxies for underlying VAT collection challenges. This study presents a first-time application of the MIMIC model to the Czech Republic, estimating the VAT gap of 2003 - 2020 and revealing fluctuations between 27 % and 35 % of total tax liability, with stabilization at 31 % since 2016. The findings underscore policy areas for potential improvements in VAT compliance and collection efficiency, particularly through enhanced digitalization efforts and governance quality in tax administration by highlighting key factors contributing to the VAT gap.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
European Journal of Government and Economics
ISSN
2254-7088
e-ISSN
2254-7088
Volume of the periodical
13
Issue of the periodical within the volume
4
Country of publishing house
ES - SPAIN
Number of pages
17
Pages from-to
189-205
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85211591120