Suriname is the latest country to announce an intention to replace a turnover tax with VAT.
The new tax is expected to apply from 2014 and basic food items are likely to be zero rated.
The policy and tax administration arguments for VAT are pretty compelling. Also, zero rating some domestic consumption, while not “pure” provides governments with a convenient lever for achieving policy outcomes.
We await with interest which way the US will go.
Barrister, Director and Consultant specialising in tax, family enterprise governance and succession, helping start ups and entrepreneurial enterprises grow safely and international expert on value added tax policy and implementation.