IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2022-057.html
   My bibliography  Save this paper

Digitalization and Tax Compliance Spillovers: Evidence from a VAT e-Invoicing Reform in Peru

Author

Listed:
  • Mr. Matthieu Bellon
  • Ms. Era Dabla-Norris
  • Salma Khalid
  • Juan Carlos Paliza
  • Jillie Chang
  • Pilar Villena

Abstract

Our study uses administrative data on firm-to-firm transactions and quasi- experimental variation in the rollout of electronic invoicing reforms in Peru to study the diffusion of e-invoicing through firm networks and its effect on tax compliance. We find that voluntary e-invoicing adoption is higher amongst firms with partners who are mandated to adopt e-invoicing, implying positive technology adoption spillovers. Spillovers are stronger from downstream partners and from export-oriented firms. Firms are less likely to continue transacting with a partner who has been mandated into e-invoicing, with the effect only partially reversed if both firms adopt e-invoicing, suggesting that network segmentation may occur. Smaller firms who transact with partners mandated into e-invoicing report 11 percent more sales and pay 17 more VAT in the year that their partner is mandated to adopt e-invoicing, suggesting positive spillovers in tax compliance behavior for this subset of firms.

Suggested Citation

  • Mr. Matthieu Bellon & Ms. Era Dabla-Norris & Salma Khalid & Juan Carlos Paliza & Jillie Chang & Pilar Villena, 2022. "Digitalization and Tax Compliance Spillovers: Evidence from a VAT e-Invoicing Reform in Peru," IMF Working Papers 2022/057, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2022/057
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=515162
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Glenn P. Jenkins & Siamand Hesami & Osaid Alshamleh & Anastasiya Yarygina & Carola Pessino, 2023. "A Cost-Benefit Analysis Methodology for Administrative Prefilling of Value-Added Tax Returns: An Application for Chile," Development Discussion Papers 2023-10, JDI Executive Programs.
    2. Wei, Wei & Song, Yan & Jin, Ruifeng, 2024. "The impact of tax digitalization on corporate salary structures," Finance Research Letters, Elsevier, vol. 64(C).
    3. Kira Zerwer, 2024. "VAT do you eat? Green consumption taxes and firms' market share," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 504-523, June.
    4. Siamand Hesami & Hatice Jenkins & Glenn P. Jenkins, 2024. "Digital Transformation of Tax Administration and Compliance: A Systematic Literature Review on E-Invoicing and Prefilled Returns," Development Discussion Papers 2023-14, JDI Executive Programs.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2022/057. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.