Estimating Value Added Tax GAP in Turkey


Canıkalp E., Ünlükaplan İ., Çelik M.

INTERNATIONAL JOURNAL OF INNOVATION AND ECONOMIC DEVELOPMENT, vol.2, no.3, pp.18-25, 2016 (Refereed Journals of Other Institutions)

  • Publication Type: Article / Article
  • Volume: 2 Issue: 3
  • Publication Date: 2016
  • Doi Number: 10.18775/ijied.1849-7551-7020.2015
  • Title of Journal : INTERNATIONAL JOURNAL OF INNOVATION AND ECONOMIC DEVELOPMENT
  • Page Numbers: pp.18-25

Abstract

As an important issue in the fiscal structure of a country, the tax gap is defined as the difference between the tax burden that the taxpayer should face and the amount actually paid. In this study, the tax gap was evaluated by the framework of the Value Added Tax. The reason behind this choice, i.e. Value Added Tax Gap (VAT Gap) is to make an effort to evaluate the efficiency of the tax administration, the compliance of the taxpayers and the relationship between policy gap and the compliance gap. With this aim, VAT Gap and the various methods to calculate this gap were examined. Furthermore, based on the reports by the European Commission, VAT Gap in Turkey for 1993-2014 period were estimated and evaluated by employing the top-down method.