Abstract:
When the widespread use of cash in the shadow economy is considered, it is a way of promoting card payment instruments in consumption expenditures in order to prevent not to report or to underreport sales and the tax evasion. In this study, the effect of both credit card and bank card usages as well as other variables on the VAT revenue is examined through the data of the terms of 2012-2018 in Turkey by using the ARDL border test approach. The obtained main findings in the long-term show that the growing use of credit cards increases the VAT revenue while the growing of cash withdrawals via bank cards reduces the VAT revenue.

Keywords: Shadow Economy, Tax Evasion, VAT, Credit Card, Debit Card

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