Global Value Added Tax Harmonization
| Name | Value Added Tax Harmonization |
| Reference | http://www.pragmetaknowledgeclout.be/vat-erp (in [1] there are further references to how double VAT is avoided in the European Union). |
Bibliography
1. Jan B. M. Goossenaerts, Alexander T. M. Zegers, and Jan M. Smits. A multi-level model-driven regime for value-added tax compliance in erp systems. Computers in Industry, 60(9):709–727, December 2009. (draft version at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1367042 )
2. Isabel V. Sawhill. Current Deficits are Not the Problem, Oct. 15 2010, http://www.brookings.edu/opinions/2010/1015_current_deficits_sawhill.aspx
Socio-economic scope
| Actants | |
| - Roles | WTO (Actor Atlas link) (In particular its Working Party on Domestic Regulations); National regulators (enacts VAT regulations); Customs Offices; National tax authorities (collects tax); Companies (submitting VAT declarations); ERP vendors (implementing VAT functionality in the enterprise systems); VAT-ERP experts |
| - Tools | ERP Systems [1] |
| - Services | VAT collection and Customs solutions (increasingly internet based for SMEs) |
| Inputs/Outputs | See [1] for more details. |
| Target Outcome | Reduced complexity in international trade; ensure an income for governments that is growing proportionally with the economic activity in the country; avoid double taxation |
Dynamic context
(Value added) tax harmonization must be considered as part of the capacity building of (developing countries) in a global context where the interwoveness of aid and trade is increasingly emphasized.
In global value chains, it is only equitable that national governments are empowered to collect taxes that are proportional to the economic value added by economic actors in their countries.
In her Upfront Blog, Isabel V. Sawhill [2] describes VAT as pro-growth, simpler (then income tax) and broader-based, and a possible solution to US budget deficits.
| Action Realm | Change for the time being, next: Operations |
| Part of | Worldwide sustainable development |
| Parts | Value Added Tax (per country) |
| Preceeding Interactions | Trade Agreements & Global development policies |
| Succeeding Interactions | none |
| Alternatives | Do nothing and leave the difficulties to the (small and mid-sized) economic actors, to solve them singly-and-severally. |
| Risks |
Siblings under International:
Global Value Added Tax Harmonization is generalization of:
page revision: 6, last edited: 23 Oct 2010 09:15
