01866cas a2200277 a 4500 AALejournalIMF015923 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513513812 1018-5941 BD-DhAAL BD-DhAAL Liu, Li. VAT Notches, Voluntary Registration, and Bunching : Theory and UK Evidence / Li Liu, Ben Lockwood, Miguel Almunia, Eddy Tam. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (78 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using administrative tax records for UK businesses, we document both bunching in annual turnover below the VAT registration threshold and persistent voluntary registration by almost half of the firms below the threshold. We develop a conceptual framework that can simultaneously explain these two apparently conflicting facts. The framework also predicts that higher intermediate input shares, lower product-market competition and a lower share of business to consumer (B2C) sales lead to voluntary registration. The predictions are exactly the opposite for bunching. We test the theory using linked VAT and corporation tax records from 2004-2014, finding empirical support for these predictions. Mode of access: Internet Almunia, Miguel. Lockwood, Ben. Tam, Eddy. IMF Working Papers; Working Paper ; No. 2019/205 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/205/001.2019.issue-205-en.xml IMF e-Library