VAT design and energy trade: the case of Russia and Ukraine.(value-added tax): An article from: IMF Staff Papers

This digital document is an article from IMF Staff Papers, published by International Monetary Fund on April 1, 2005. The length of the article is 7599 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Given the substantial rents involved in oil and gas trade and the incentives for noncooperative behavior, Russia and Ukraine have chosen to deviate from standard tax considerations, which suggest the use of a destination-based value-added tax (VAT) regime. Oil and gas trade is a major source of Russian tax revenue, which is collected partly through an origin-based VAT on energy trade within the Commonwealth of Independent States. This paper shows that, if nondistorting taxes were unavailable, Ukraine would benefit by taxing away the pure profits of the domestic seller of natural gas imports from Russia. The paper also assesses the circumstances under which Ukraine would benefit from simultaneously providing a credit for Russian VAT payments by importers. [JEL F12, H21, Q43]

Citation Details
Title: VAT design and energy trade: the case of Russia and Ukraine.(value-added tax)
Author: Clinton R. Shiells
Publication:IMF Staff Papers (Refereed)
Date: April 1, 2005
Publisher: International Monetary Fund
Volume: 52 Issue: 1 Page: 103(17)

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