The VATSIM-DF is a simulation model developed by the Department of Finance (DF) with the aim of assessing the effects of VAT reforms, regarding both the quantification of changes in revenues and the distributive effects of tax incidence variations on households’ disposable income. VATSIMDF consists of three modules. This methodological note aims to explain how the VATSIM-DF (I) works. By following a mesoeconomic approach, this module simulates VAT revenues under current legislation on the three (3) principal components of demand. Firstly, household final consumption, that is the “pure” VAT component; secondly, the non-deductible purchases of goods and services (both intermediate and capital goods) made by firms which operate in the market and non-market sectors (“impure” VAT); lastly, the adjustment to VAT tax base due to sales and purchases made by firms below-threshold, not subject to VAT application.
A Methodological Note on VATSIM-DF (I) VAT Micro Simulation Model for Italy / Cala', VALERIO FERDINANDO; Carta, Silvia; Manzo, Marco; Signorelli, Luca. - (2020).
A Methodological Note on VATSIM-DF (I) VAT Micro Simulation Model for Italy
CALA', VALERIO FERDINANDO;
2020
Abstract
The VATSIM-DF is a simulation model developed by the Department of Finance (DF) with the aim of assessing the effects of VAT reforms, regarding both the quantification of changes in revenues and the distributive effects of tax incidence variations on households’ disposable income. VATSIMDF consists of three modules. This methodological note aims to explain how the VATSIM-DF (I) works. By following a mesoeconomic approach, this module simulates VAT revenues under current legislation on the three (3) principal components of demand. Firstly, household final consumption, that is the “pure” VAT component; secondly, the non-deductible purchases of goods and services (both intermediate and capital goods) made by firms which operate in the market and non-market sectors (“impure” VAT); lastly, the adjustment to VAT tax base due to sales and purchases made by firms below-threshold, not subject to VAT application.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
