New article by Hopland
The article "Pushing the Wrong Buttons: VAT Evasion by Misclassification of Meal Consumption Type" has been published in European Accounting Review.
European Accounting Review is on level 3 in the ABS Academic Journal Guide.
Hopland, Arnt Ove, and Robert Ullmann: Pushing the Wrong Buttons: VAT Evasion by Misclassification of Meal Consumption Type, European Accounting Review, Online 26.12.2019.
Abstract
We use rich, micro-level tax return data for the entire population of small and medium-sized German restaurants and find empirical evidence that these firms employ the misclassification of meal consumption type as a VAT evasion strategy.
Using difference-in-differences as well as triple-difference-in-differences specifications, we find that a ceteris paribus increase in the standard VAT rate significantly increases the declared sales volume of take-away consumption (reduced rate) relative to on-site consumption (standard rate), even though gross prices are customarily identical for both consumption types.