VAT inc VAT exc
Liability F. Credit
T (Net) 
Adjustment in Frontier (Rebate of VAT) (30% * 17, that is, without accounting 1 due to “saldo técnico” = - 5)
TB = 12/200 = 6,5 %
Final Result without devolution of “saldo técnico”
TB = 13/200 = 6,5 %
Note: decimals are omitted except in TB; little differences are due to calculus simplifications.
Case 6: Agricultural Sector production sold partially abroad with border adjustment (rebate of VAT for exports)
STAGE II: Harvest labors … Cattle feeding
STAGE III: Trading
STAGE I: Land labors
AGRICULTURAL SECTOR (CORN AND MEAT)
4) Additional comments on VAT and Tax on Exports Incidence
Through all cases analyzed before was possible to demonstrate that depending on price- elasticity of demand and supply, different results will arise in tax revenue and tax burden shifting forward and backward and economic incidence of the tax. Those results are obviously different in case of domestic (or non-tradable) goods and in case of tradable goods (commodities). But it should be emphasized that in all cases the Agricultural Sector is the legal taxpayer, so the measurement of tax burden should assign revenues paid by the sector, no matter whether tax burden could be finally shifted forward or backwards through market mechanisms.
Anyhow, for further understanding of the point, it is useful to analyze the effect of others “equivalent public policies” that governments usually implement as substitute of fiscal-tax policy.24. The instrument more relevant and well known by exporters and commodities` producers is Tax or Quota on Exports.
Figure Nº 5 shows the Agricultural Sector producing with an upward or positive sloping cost curve (supply curve with “normal” sloping), facing an also “normal” decreasing or
24 “Equivalent public policies” are defined as the implementation of alternatives policy instruments or a combination of policy instruments that have similar fiscal o quasi-fiscal results in government finance and equal economic effects (economic incidence) in the private sector.