Financial institutions are exempt from the value-added tax (VAT) in most countries. We develop a general equilibrium model with endogenous firm entry and a banking sector to accommodate three key distortions related to exempt treatment: (i) self-supply bias in the banking sector, (ii) under-taxation of payment services, and (iii) input distortions in the business sector and tax cascading. We calibrate our model to the average of Germany, France, and the UK data. Our results show that repealing exempt treatment always increases tax revenues. However, welfare gains occur only at low VAT rates due to the hump-shaped VAT Laffer curve.

中文翻译：

---

金融服务增值税处理：对实体经济的影响

大多数国家的金融机构免征增值税 (VAT)。我们开发了一个具有内生企业进入和银行业的一般均衡模型，以适应与豁免待遇相关的三个关键扭曲：(i) 银行业的自给偏差，(ii) 支付服务的征税不足，以及 (iii)商业部门的投入扭曲和税收层叠。我们将模型校准为德国、法国和英国数据的平均值。我们的结果表明，废除免税待遇总是会增加税收。然而，由于驼峰形增值税拉弗曲线，福利收益仅在低增值税率下发生。