- Recent misinformation about VAT and GST systems, especially regarding proposed reciprocal tariffs, has led to misconceptions that these systems create unfair trade barriers for US corporations.
- VAT systems ensure a level playing field by applying equally to both domestic and foreign suppliers for all goods and services within the local system.
- In contrast, tariffs are designed to protect domestic industries by making imported goods more expensive and can also be used to exert political pressure on foreign countries.
Source: Grant Thornton
