Monthly turnover figures using nowcasting

This paper proposes a nowcasting method to produce monthly turnover figures based on value added tax that is declared partially on a monthly and partially on a quarterly frequency.
Short term business statistics for the industries Services and Transportation in the Netherlands are compiled from Value Added Tax (VAT) administrations. The legal regulation in the Netherlands allows companies to decide for themselves to file a tax return on a monthly, quarterly or even at an annual basis. In this paper several estimation procedures are compared to compile timely monthly short term business statistics from VAT declarations from companies reporting partly on a monthly basis and partly on a quarterly basis. The method proposed is based on the temporal disaggregation method of Chow Lin extended with a nowcast method based on a bridge model.