01979cas a2200277 a 4500 AALejournalIMF015925 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513513713 1018-5941 BD-DhAAL BD-DhAAL Bellon, Matthieu. Digitalization to Improve Tax Compliance : Evidence from VAT e-Invoicing in Peru / Matthieu Bellon, Jillie Chang, Era Dabla-Norris, Salma Khalid. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (36 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 This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform's positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization. Mode of access: Internet Chang, Jillie. Dabla-Norris, Era. Khalid, Salma. IMF Working Papers; Working Paper ; No. 2019/231 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/231/001.2019.issue-231-en.xml IMF e-Library