A Destination VAT for CIS Trade

Author/Editor:

Victoria J Perry ; Katherine Baer ; Emil M Sunley

Publication Date:

April 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In all of the new countries formed after the dissolution of the Soviet Union, other than the Baltics, the value-added taxes (VATs) adopted were “hybrid” VATs that treat CIS trade differently from trade with the rest of the world. This paper inquires whether this is appropriate. The paper concludes that it would be better if all CIS countries applied the destination principle to CIS trade as well as to trade with the rest of the world. The paper addresses the economic, administrative and revenue allocation considerations underlying this decision.

Series:

Working Paper No. 1996/035

Subject:

Destination-based taxation Exports Imports International trade Tariffs Taxes Value-added tax

English

Publication Date:

April 1, 1996

ISBN/ISSN:

9781451978551/1018-5941

Stock No:

WPIEA0351996

Pages:

30

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