In the first edition of Shifting the Balance, published in June 2007 we highlighted trends that are, if anything, more pronounced today. At PwC1, we see an increasing number of countries around the world adopting or reforming their VAT or GST systems in line with the demands of a rapidly changing global economy.
VAT systems (including GST) have now been implemented in 156 countries around the world, with seven more considering implementation by 2013.
The trend away from direct forms of taxation and towards indirect taxes continues inexorably. China and India have both signalled their intention to move towards a uniform VAT system to replace current regimes. The countries of the Gulf Cooperation Council (GCC) are working towards a VAT system.