Comparison
of Federal VAT Systems
Nature of VAT
|
Country
Examples
|
Disadvantages
|
Independent
VATs at Centre and States
|
Brazil,
Russia, Argentina
|
Differences
in base and rates weaken administration and compliance. Inter-state
transactions difficult to manage.
|
VAT
levied and administered at Centre
|
Australia,
Germany, Austria, Switzerland, etc.
|
State
government relieved of responsibility of raising taxes which also takes away
fiscal discretion of States
|
Dual VAT
|
Canada
and India today
|
A
combination of the above two and hence limits both their disadvantages
|
“Clean”
dual VAT
|
India’s
GST
|
Common base and common or similar rates
facilitate administration and compliance, including for Integrated-state
transactions, while continuing to provide some fiscal autonomy to States
|
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