Research Article

VAT lottery incentives: An opportunity for South Africa?

Published in: South African Journal of Accounting Research
Volume 35 , issue 2 , 2021 , pages: 111–129

DOI: 10.1080/10291954.2020.1832309

Author(s): Manda Burger , South Africa , Anculien Schoeman , South Africa

Keywords: award , behaviour , incentive , reward , tax compliance , VAT lottery

Abstract

Some countries have introduced receipt-based tax lotteries (value-added tax (VAT) lotteries) in recent years in an effort to improve tax compliance. This acknowledges that the traditional method of tax compliance enforcement through audits, fines and penalties alone may no longer be optimal. The idea of a VAT lottery is to incentivise consumers to ask for a receipt when paying for goods or services, which serves as a lottery ticket that gives the consumer an opportunity to win a prize.

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