| Abstract: | It has been claimed that an increase in the ratio of VAT reclaimed to VAT paid is an indicator of increasing non-compliance. By examining this ratio, this paper evaluates the potential for VAT non-compliance in the Restaurant and Take-out, Clothing and Footwear, Furniture and Floor-coverings, and Hairdressing markets. Estimates of aggregate expenditure are used to estimate potential gross VAT payments. These are compared with actual gross payments as an indicator of the extent of non-compliance. |
