Benefits of the VAT System
1. Recommended by the OECS Tax Reform Commission for member countries as part of a general tax reform program.
2. Some countries like Saint Lucia are seeking ways to be consistent witht he requirements of regional and international
trade agreemenets.
3. VAT is a fairer system; everyone contributes at the same rate. the VAT Treatment is the same regardless of the consumer.
4. Introduction of the VAT is a good opportunity to revamp the Inland Revenue and Customs Administrations.
5. VAT is not an additional tax but a part of TAX REFORM
6. VAT is to provide long-term economic improvements
7. In some juridictions, consumers pay a tax upon another tax for some goods and services
8. Since VAT is a replacement tax for some Indirect Taxes consumers currently pay, it will cost government a lot less to manage the
one tax, as opposed to a large number of small nuisance taxes.
9. VAT will replace the multi-rated Consumption Tax with a single-rated tax on domestic and imported goods and services
10. VAT is a visible tax: Consumers will now be able to see the amount of tax they have paid on the goods or services they buy or use.
Therefore VAT is more transparent.