Launchers are on the higher end of the space value chain. Given the importance of the subject, in 2014 ESA has requested an independent consulting team to perform a dedicated study to assess ex-post the direct, indirect and induced socio-economic impacts of the Ariane 5 programme (mid-term evaluation) and of the Vega programme (early evaluation).
A special analysis was carried out to capture the effect of the VAT exemption for ESA-funded activities. It’s important to stress that government revenues are not a part of the total value added: they repre-sent the total spending that goes back to the government, i.e. that goes out the macroeconomic flow.
Government revenues realized from Ariane 5 programme are significant for ESA Member States: these revenues do not come just from the input (i.e. the initial ESA spending), but from taxation on all the extended transactional money flow. Since ESA is exempt from VAT, most of this VAT arise from the wider economy (indirect and induced).