Consumer Incentives and the Last Mile of VAT Enforcement
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Mikel Alla
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This integrative review examines why value-added tax (VAT) self-enforcement weakens at final consumption and which enforcement functions can address that gap. It compares purposively selected theoretical and empirical studies and uses Albanian official documentation as an institutional illustration. The synthesis distinguishes invoice demand induced by input credits, consumer verification, independent payment records and administrative follow-up. Receipt rewards can improve reporting, but electronic payment adoption does not consistently improve compliance, and higher declared liabilities need not increase collections. The contribution is a diagnostic framework connecting each intervention to the information it supplies and the outcome it can affect. For Albania, verification infrastructure provides a basis for evaluation, not evidence of revenue effects.
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Authors
Mikel Alla
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References:
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