Goals

Objectives of the publication

Value Added Tax is a state tax with harmonized regulations in the European Union, the collection of which is linked to the evolution of relevant economic figures in the economy. There are a number of factors that influence the final amount of revenue collected, factors that interact in a complex manner and make it difficult to interpret the revenue collection response.

The analysis of VAT revenue data included in this publication aims to provide a suitable tool for quantifying the revenue effects attributable to each economic factor. The analysis is framed within the company's environment as a reporting unit, and in the evolution of the determining magnitudes of its production account: sales, interior or exterior; purchases, current or investment; added value, incorporated in the production process or acquired from abroad, as well as the connection or revenue impact of each of these elements.

The ultimate goal is to analyze the tax corresponding to final domestic consumption through the indirect analysis provided by the tax returns and settlements. That is, the tax corresponding to the aggregation of added values incorporated into production by all economic units in the system (reporting units).

This analysis is required by the tax settlement mechanism itself, which, although its clear objective is consumption, is implemented as a system that taxes the added value generated by economic units through the quota-on-quota mechanism: impact of VAT on the supply of goods and services, deduction of VAT incurred on acquisitions and, finally, in the settlement, payment of the difference.

Thus, although the tax is implemented through a simple mechanism for the settlement and collection of its quotas, the construction of the aggregate economic concepts and more specifically the construction of the "Theoretical Basis of the Tax", which would be the "Final Domestic Consumption", requires an integration of the information provided by companies in order to achieve a transcendence of the individual figures, so that the behavior of the economic cyclical elements and their influence on collection are evident.