The European Union (EU) recently implemented the Minimum Tax Directive (Pillar Two) to ensure that profits of large companies are at least taxed at 15%. At the same time, the European Commission proposed the…
In many decentralized countries, local tax rates are set by local governments but are simultaneously linked to tax schedules that are determined by superior governments. In such systems, a change to the tax…
The advantages of adaptive experiments have led to their rapid adoption in economics, other fields, as well as among practitioners. However, adaptive experiments pose challenges for causal inference. This note…
We investigate whether firms engage in VAT evasion at the retail stage—typically a point of weakness in VAT systems—in a high-enforcement, low-informality setting. To measure evasion, we exploit a reform of VAT…
We evaluate a tax reform in Ecuador that introduced generous deductions from personal income taxes (PIT), encouraging consumers to request receipts. The reform addresses tax evasion by targeting small…
The purpose of this paper is to evaluate the effect of reverse-charge mechanism (RCM) implementation on VAT compliance using an overall, countrylevel measure of VAT compliance, the VAT gap. The VAT gap is…