- VAT’s growth in nearly 40 countries has slowed
- Average share of VAT/GST/Sales Tax as a share of total tax revenues has fallen from 34% to 32%
- Decline in VAT is due to faster rising income taxes rather than countries turning away from VAT
- COVID and inflation emergency VAT cuts were at a peak in 2022, affecting indirect tax numbers
- Finance ministries applied liberal VAT cuts during COVID and inflation spike crises
- Total revenue take for OECD member states was down from 34.15% to 34.0% in 2022
- Corporate income taxes rose sharply due to global economies bouncing back from COVID lockdown
- Revenues from VAT remained consistent and buoyant
- Governments will continue to expand VAT as a positive taxing model
- Approximate dependency on VAT by region: South America, Europe, AsiaPac, North America
- OECD plays an active role in researching and assisting member and non-member states in developing tax policies and administrations
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
