부가가치세 간이과세 확대의 소득재분배 효과 분석

Abstract

This study analyzes the effects of augmenting the simplified taxation scope of Value-Added Tax enacted as a part of the 2020 VAT reform in Korea. The VAT reform is to help small-size self-employed by mitigating their tax burden to cope with the negative effects of the long-lasting COVID-19. The VAT reform of simplified VAT taxation extends the scope of VAT exemption up to KRW 48 million and that of the simplified taxation between KRW 48 and 80 million. A counterfactual analysis shows that the changes in the simplified taxation scope are expected to increase the average household income by KRW 490 thousand for the new VAT-exempt small businesses and by KRW 848 thousand for the new simplified taxpayers, respectively. The induced increase in income seems to be concentrated relatively more in low and middle income deciles and, so, yield a slightly positive income redistributive effect: 0.11% reduction in Gini coefficient (from 0.40589 to 0.40559). The changes in simplified VAT taxation scope seem to be successful in supporting the income of the small-size self-employed and, so, alleviating the regressive VAT burden with the positive income redistribution. However, the validity of expanding the VAT simplified taxation scope seems to be widely debatable, because its main purpose is not to financially support the small VAT businesses but to help their voluntary VAT compliance. However, the validity of expanding the VAT simplified taxation scope seems to be widely debatable, because its main purpose is not to financially support the small VAT businesses but to help their voluntary VAT compliance.