A General Microsimulation Model for the EU VAT with a specific Application to Germany

Arbeitspapier

The sales taxes in the EU - and in several other countries - are practiced as value-added tax of the consumption type with invoice method. Literature on microsimulation models (MSM) for this type of VAT is rare, though the importance of VAT has continuously increased. We discuss the issues of VAT-MSM in detail and develop a basic general VAT-MSM, applicable to the EU member states (and beyond). To illustrate the functioning of the general model, we apply it in detail to the specific case of Germany. We provide comprehensive estimation results for the distributional and fiscal effects of the German VAT. Finally, we simulate the effects of a small VAT reform in 2010, comparing static and behavioral response simulations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 45-2014

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Incidence ; Consumer Economics: Empirical Analysis ; Personal Income, Wealth, and Their Distributions ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement
• Subject: €“H24 ; VAT microsimulation VAT exemption RWI-VAT-SIM EU

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Siemers, Lars-H. R.
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Faculty of Business Administration and Economics
• (where): Marburg
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/105072
• Last update: 10.03.2025, 11:41 AM CET