OECD article: “Value-added tax (VAT) is a consumption tax applied at each stage of the supply chain whenever value is added to goods or services. Businesses collect and remit VAT. The VAT data that are collected represent a breakthrough in studying production networks because they capture actual transactions between firms at an unprecedented level of detail. Unlike traditional business surveys or administrative data that might tell us about a firm’s size or industry, VAT records show us who does business with whom and for how much.
This data is particularly valuable because of its comprehensive coverage. In Estonia, for example, all VAT-registered businesses must report transactions above €1,000 per month, creating an almost complete picture of significant business relationships in the economy.
At least 15 countries now have such data available, including Belgium, Chile, Costa Rica, Estonia, and Italy. This growing availability creates opportunities for cross-country comparison and broader economic insights…(More)”.
