VAT Treatment of Financial Institutions

• Main Authors: BAYDUR, Ismail, YILMAZ, Fatih
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: VAT; Financial Services; Exempt Treatment; General Equilibrium; Heterogeneous Firms; Finance; Taxation
• Online Access: https://ink.library.smu.edu.sg/soe_research/2033; https://ink.library.smu.edu.sg/context/soe_research/article/3032/viewcontent/EEAESEM2017_1801.pdf
• Institution: Singapore Management University

This paper studies the effects of exempt treatment of financial services under a VATsystem. We develop a general equilibrium model with elastic labor supply, endogenous entry, anda banking sector. The banking sector provides loan services to producers and payment servicesto consumers. Our model disp...