The VAT in Developing and Transitional Countries

This book reviews experiences with value-added taxes (VATs) around the world.

Richard Bird (Author), Pierre-Pascal Gendron (Author)

9780521877657, Cambridge University Press

Hardback, published 3 September 2007

278 pages, 26 tables
22.9 x 15.2 x 1.9 cm, 0.58 kg

'This book provides a wealth of information on the tax that is the world's most widely used consumption-based revenue instrument. It carefully analyzes in one clearly and concisely written volume the latest advances in the theoretical, empirical and administrative literatures on the VAT. Who knows, it might even help prod US policymakers into giving the VAT the serious consideration it deserves.' George Zodrow, Rice University

Value-added tax (VAT) dominates tax systems around the world. But should every country have a VAT? Is VAT always as good as it could be in economic, equity and administrative terms? In developing and transitional countries the answers to such questions are critical to stability, growth and development. VAT is a critical fiscal tool in most countries. But VAT can sometimes be better designed and almost always better administered. The key questions that must be answered in designing and implementing VAT are essentially the same in all countries. But different tax designs may best suit different countries facing different circumstances. This book reviews experiences with VATs around the world and assesses how the choice of particular design features may affect outcomes in particular contexts.

1. Why this book?
2. The rise of VAT
3. Is VAT always the answer?
4. Trade and revenue
5. Equity and the informal sector
6. What should be taxed?
7. Key issues in VAT design
8. New issues in VAT design
9. Administering VAT
10. Dealing with difficulties
11. The political economy of VAT
12. Where do we go from here?

Subject Areas: Finance [KFF], Accounting [KFC], Political economy [KCP]