This setup means companies don’t really pay the VAT — they just help collect it. But, shoppers don’t get this offset, so they’re the ones who truly pay the tax. Here’s an example of how ...

The VAT began life in the more developed countries of Europe and Latin America but, over the past 25 years, has been adopted by a vast number of developing and transition countries. A recent IMF study ...

Most countries exempt small businesses from value-added tax, although many small businesses choose to voluntarily register for the VAT. Most countries exempt small businesses from a value-added tax ...

In practice, governments have implemented the VAT largely as an improved sales tax. European countries, for example, have largely used the VAT to reduce or eliminate other sales taxes. The countries ...

This paper evaluates the political economy and structural factors explaining the collection efficiency of the Value Added Tax [VAT]. We consider the case where the collection efficiency is determined ...