How would a VAT be collected? Q.How would a VAT be collected? A.Most countries with a value-added tax employ the credit-invoice method. Under this method, businesses are taxed on their sales at each stage of production but obtain credits for the taxes they paid on inputs. Read more about How would a VAT be collected?
What transition rules would be needed for a national retail sales tax? Q.What transition rules would be needed for a national retail sales tax? A.The answer depends more on politics than economics. Read more about What transition rules would be needed for a national retail sales tax?
What would the rate be under a VAT? Q.What would the rate be under a VAT? A.The rate of a value-added tax depends on how much revenue it is intended to raise and how broad the VAT base is. The lower the revenue target and the broader the base, the lower the tax rate will be. Read more about What would the rate be under a VAT?
