Estimating Value-Added Tax Using a Supply and Use Framework: The ADB National Accounts Statistics Value-Added Tax Model

By Asian Development Bank

Value-added tax (VAT) generates significant government revenue in many countries and given their broad coverage, VAT measurements are useful indicators for economic and fiscal analyses. This publication presents the Asian Development Bank’s National Accounts Statistics Value-Added Tax model, which is designed to provide a more consistent measure of non-recoverable VAT on products for national account statistics. Highlighting application results in Armenia, Kazakhstan, and Uzbekistan, it explains how the model can be used in balancing and reconciling supply and use tables as well as to assess VAT gaps. The publication shows that the model is relatively simple to apply and its consistency with the supply and use system makes it an attractive tool for policymakers.

• Language: English
• Publisher: Asian Development Bank
• Release date: Feb 1, 2024
• ISBN: 9789292705794

Book preview

ESTIMATING VALUE-ADDED TAX USING A SUPPLY AND USE FRAMEWORK

THE ADB NATIONAL ACCOUNTS STATISTICS VALUE-ADDED TAX MODEL

FEBRUARY 2024

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2024 Asian Development Bank

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Some rights reserved. Published in 2024.

ISBN 978-92-9270-578-7 (print); 978-92-9270-579-4 (electronic); 978-92-9270-580-0 (ebook)

Publication Stock No. TCS240002-2

DOI: http://dx.doi.org/10.22617/TCS240002-2

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

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Notes:

In this publication, $ refers to United States dollars.

ADB recognizes China as the People’s Republic of China and Republic of Armenia as Armenia.

Cover design by Eric Suan.

On the cover: (1 and 5) Market scene at the Gum Market in Yerevan, Armenia (photo by Eric Sales). (2) A man is selling dried fruits and delicacies at the green market in Almaty City, Kazakhstan (photo by Andrey Terekhov). (3) Daily life in Samarkand market, Uzbekistan (photo by Relisa Granovskaya); (4) Improved health services in Artashat, Armenia (photo by Inna Mkhitaryan). (6 and 7) Hamkorbank branch in Samarkand, Uzbekistan, providing sub loans to small businesses in the project with ADB (photo by Relisa Granovskaya).(8) ADB administration and governance, finance sector development (photo by Mark Floro). (9) School boy receiving water in the town of Artashat, Armenia for improved cleanliness and health of the students (photo by Inna Mkhitaryan).

CONTENTS

TABLES, FIGURES, AND BOXES

FOREWORD

Value-added taxes (VATs) have been adopted by many countries as