Estimate of the value added tax evasion: 2006-2015

Abstract

This study aims to estimate VAT evasion in Nicaragua by applying the Theoretical Potential Method Using the National Accounts, taking into account the advantages they present in low costs related to its implementation and the possibility of constructing the series of evasion, that its allows Evaluate the trend of noncompliance and the effectiveness of the Tax administration. More specifically, the non-deductible VAT method was chosen because there are no input-output matrices that allow an estimation using the value-added method and the lack of information without allowing for the development of the needs of different methodologies. The study reveals that the percentage of evasion has declined gradually, for 2006 meant 40.5% and the east decreased ten percentage points and stands at 30.3% in 2015.