Factors Influencing VAT Compliance Costs of Different Sectors in the UK

zhang, ping (2006) Factors Influencing VAT Compliance Costs of Different Sectors in the UK. [Dissertation (University of Nottingham only)] (Unpublished)

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VAT is one of the most important government revenues and is being widely applied by more than 120 countries and areas, with coverage from the under-developed area in Africa and Asia to the well developed Western Europe and North America. It is declaimed as the most important tax development of the latter twentieth century and certainly the most breathtaking. With its significant influence on the domestic economy and the government policies, VAT has been the heart of tax compliance issue. When claimed to be the most efficient and contributing revenue source, it is also criticized for the heavy compliance costs associated with its introduction.

This paper, based on prior studies and research, continues to explore the factors influencing VAT compliance costs in the UK. The data gained by professor Hasseldine, Hansford and Howorth in their questionnaire survey is further analyzed and the factors identified as statistically significant are examined within six broadly defined industries of manufacturing, goods dealing, services, professional services, public services and others.

The purpose of this paper is to examine whether the extents to which size, membership of VAT group, age, methods of VAT records keeping, psychological costs, complexity and individual characteristics affecting compliance costs of these six industries are the same or different. It is proved that these factors influence different sectors to different levels, but size is still the most significant factor for the four main sectors of manufacturing, goods dealing, services and professional services.

This is of implicating meaning for the policy makers. It can be inferred that it is necessary to consider industry variations when making efforts in VAT compliance costs relieves.

Item Type: Dissertation (University of Nottingham only)
Keywords: VAT, VAT compliance costs, UK,
Depositing User: EP, Services
Date Deposited: 05 Jan 2007
Last Modified: 18 Jan 2018 05:02
URI: https://eprints.nottingham.ac.uk/id/eprint/20413

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