Added Taxes in the ASEAN-Pacific Region
DOI:
https://doi.org/10.32890/mmj2004.8.2.7Abstract
The Value Added Tax (or Goods and Services Tax) is the most popular form of general indirect tax in the world today. Of the ASEAN countries, only Myanmar, Brunei, Laos and Malaysia do not currently have a VAT, though the latter will introduce one in 2007. In the neighbouring Pacific region, both Australia and New Zealand have GSTs in place. This paper surveys the main features of the VATs/GSTs currently found in the ASEAN-Pacific region. In terms of structure, they range from the very simple and comprehensive taxes found in Singapore and New Zealand, to the highly complex VAT of Vietnam, which has two main rates and a multitude of exempt commodities. The administrative arrangements used to assess and collect the tax differ in detail but include a number of common features, such as exemptions for small businesses, simple invoice requirements for low-value transactions, and assessment on an invoice basis for large business, with a cash basis available to small business. The information and comparisons presented here are highly relevant for countries contemplating or planning the introduction of a VAT, such as Malaysia, and for countries in the region considering modifications to the tax. In general, the more comprehensive the tax, the simpler the administrative procedures required, the less the explanatory material that needs to be produced to educate the business community, and the greater the revenue-raising power of the tax.
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References
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Zodrow, G. R., (1999), “The sales tax, the VAT and taxes in between – or Is the only good NRST a ‘VAT in drag’?”, National Tax Journal, 52 (3); 429-442 Malaysian Management Journal 8 (2), 87-101 (2004) Information on Individual Countries Information on VATs in the countries covered in this paper was largely obtained from the Websites of the relevant taxation authorities. The following gives details of the main sources of on-line information for each country. http://mmj.uum.edu.my Australia The Web site of the Australian Taxation Office www.ato.gov.au provides successive links to Business and GST Essentials. Cambodia An English translation of the VAT Tax Law (“Anukret”) dated 24.12.99 can be found at: http:/ /www.bigpond.com.kh/Council_of_Jurists/ Fiscal%5CANK19_12_114E.htm The Web site of the Ministry of Economics and Finance at http:/ /www.mef.gov.kh/organization.htm reproduces the Anukret defining its responsibilities (dated 20.1.00) with the functions of the Tax Department listed in Article 8. Indonesia The Director General of Taxes Website at http://www.pajak.go.id provides a link to a detailed Tax Guide for foreign businesses, including the VAT at: http://www.pajak.go.id/admin/guidemanager/ files/Tax_Guide.pdf New Zealand The Web site of the Internal Revenue Department at http://www.ird.govt.nz/ provides successive links to Information about Goods and Services Tax and GST Publications leading to the GST Guide, and A number of other informative publications are found on the GST Publications page. Philippines The Bureau of Internal Revenue Website provides VAT information at http://www.bir.gov.ph/ tax_vat.html The Chan Robles Virtual Law Library provides an English translation of The National Internal Revenue Code of the Philippines (Tax Reform Act of 1997) at http://www.chanrobles.com/legal6title18.htm#106 Singapore The Internal Revenue Authority of Singapore Website at http://www.iras.gov.sg/ provides a link to GST Traders and four basic GST Guides (same Web address as home page). Thailand The Revenue Department of Thailand English Website at http://www.rd.go.th/publish/ 5998.0.html provides a link through Tax Structures to Value Added Tax at http://www.rd.go.th/ publish/6043.0.html Vietnam The Ministry of Finance English language Website is found at: http://www.mof.gov.vn/ DefaultE.aspx?tabid=197 Basic information on the VAT is found in the Circular on Value Added Tax dated 29.12.2000 (no Web address) which can be accessed through the “Search for Legal Documents on Financial Issues” link by inputting the document number, 122/2000/TT-BTC. Further information can be found in the document Amendments to the Law on Value Added Taxation dated 31.7.03 (no Web address) accessed by searching for the document number 07/2003/QH11. A general search for “VAT” on the home page lists a number of other documents in the nature of rulings and amendments.
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