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Research Details
The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms
Abstract
This paper uses a balanced panel of large manufacturing firms to study the dynamic effects of computerizing VAT invoices on tax revenues and firm behavior in China, 1998-2007. We find that computerization explains 10.8% of cumulative VAT revenues and increases the effective average tax rate by approximately 9-12% in the seven subsequent years. The evidence suggests that the effects of computerization change over time: tax revenue gains are likely to be smaller in the long run, while firm output contract monotonically over time.
Type
Working Paper
Author(s)
Nancy Qian, Jaya Wen, Liu Yu
Date Published
2021
Citations
Qian, Nancy, Jaya Wen, and Liu Yu. 2021. The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms.
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