<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>It is generally accepted that within nations devoid of significant limitations on administrative capacity, all products and services should be subject to a uniform value-added tax (VAT). If compliance is impeccable, the c-efficiency of VAT in these countries, which measures actual revenue over prospective revenue, should be one. The establishment of a proficient VAT administration, characterized by streamlined processes and procedures, is advantageous for many stakeholders. This includes national administrations as well as individual taxpayers and citizens. The study used primary data sources to identify the relationship between tax administration and the performance of VAT. This paper offers an assessment of tax administration effectiveness in Serbia in the period from 2005 to 2022. The investigation aims to accumulate empirical information regarding administrative components that affect the c-efficiency ratio through careful observation and data collection. The study assured that tax administration significantly affects the performance of VAT. The outcome variable, the c-efficiency ratio is highly affected by the effectiveness of tax administrators.</p>
</abstract>

It is generally accepted that within nations devoid of significant limitations on administrative capacity, all products and services should be subject to a uniform value-added tax (VAT). If compliance is impeccable, the c-efficiency of VAT in these countries, which measures actual revenue over prospective revenue, should be one. The establishment of a proficient VAT administration, characterized by streamlined processes and procedures, is advantageous for many stakeholders. This includes national administrations as well as individual taxpayers and citizens. The study used primary data sources to identify the relationship between tax administration and the performance of VAT. This paper offers an assessment of tax administration effectiveness in Serbia in the period from 2005 to 2022. The investigation aims to accumulate empirical information regarding administrative components that affect the c-efficiency ratio through careful observation and data collection. The study assured that tax administration significantly affects the performance of VAT. The outcome variable, the c-efficiency ratio is highly affected by the effectiveness of tax administrators.

What Drives the Performance of Value-Added Tax? Investigating the Effectiveness of Tax Administration in Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

It is generally accepted that within nations devoid of significant limitations on administrative capacity, all products and services should be subject to a...

What Drives the Performance of Value-Added Tax? Investigating the Effectiveness of Tax Administration in Serbia

Published Online: Mar 26, 2024

Page range: 477 - 496

Received: Nov 01, 2023

Accepted: Dec 29, 2023

DOI: https://doi.org/10.2478/ethemes-2023-0025

Keywords
VAT, tax administration, performance of VAT, c-efficiency ratio, tax reform, EU, Serbia

© 2023 Milica Ristić Cakić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

What Drives the Performance of Value-Added Tax? Investigating the Effectiveness of Tax Administration in Serbia

Published Online: Mar 26, 2024

Page range: 477 - 496

Received: Nov 01, 2023

Accepted: Dec 29, 2023

DOI: https://doi.org/10.2478/ethemes-2023-0025

KeywordsVAT, tax administration, performance of VAT, c-efficiency ratio, tax reform, EU, Serbia

© 2023 Milica Ristić Cakić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
VAT, tax administration, performance of VAT, c-efficiency ratio, tax reform, EU, Serbia