VAT in Latin America and its Implication on the Tax Burden and Fiscal Pressure. Paraguay, Argentina, Colombia and Uruguay

Authors

DOI:

https://doi.org/10.58287/rcfotriem-1-2-2022-14

Keywords:

VAT, Tax Burden, Tax Pressure, GDP, Tax Collection

Abstract

Families, corporations and the State are part of an economic cycle, which carry out these activities that meet their needs, which increases the prosperity of people. The family is a group of people, which makes them units of consumption; while corporations are a basic unit of production; and, on the other hand, the State is in charge of regulating the national economy, administering public resources, and providing people with goods and services, which helps to collect taxes. The economic processes are production, distribution, marketing and consumption; All these processes are taxed by the Value Added Tax. As for VAT, it has a direct impact on consumers' pockets and depends on the taxpayer's ability to pay the tax. That is why, within the economic indicators such as employment, the Gross Domestic Product (GDP), the Consumer Price Index (CPI) and inflation, they allow the benefit of knowing how the country's economy is evolving and obtaining the compression on

 

the comparison between the country and the world. VAT is one of the taxes that collects the most for the State, it is very important to determine the Fiscal Pressure in Latin America, just as Uruguay is the country with the highest fiscal pressure; followed by Argentina with a high pressure, Colombia, with a medium, meanwhile, Paraguay is the country with the lowest fiscal pressure in South America. The world economy has been seriously affected by the pandemic, creating significant imbalances in all sectors. Governments have had to take various measures in order to deal with the crisis. The implication of VAT on the tax burden and fiscal pressure in the various countries analyzed was verified and it is concluded that VAT exerts a direct influence on the tax burden and fiscal pressure.

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Published

2022-12-30

How to Cite

Rojas Martínez, B. N. (2022). VAT in Latin America and its Implication on the Tax Burden and Fiscal Pressure. Paraguay, Argentina, Colombia and Uruguay. Revista De Ciencias Empresariales, Tributarias, Comerciales Y Administrativas, 1(2), 26–52. https://doi.org/10.58287/rcfotriem-1-2-2022-14

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Section

Original articles