VAT muddle

Readers' Views No 296, Q3 2013
OECD Observer

The idea of a "single rate system" as espoused here (VAT's next half century: Towards a single-rate system? No 284, Q1 2011) shows that the author–for that matter the entire OECD–needs to know certain facts.

In a VAT medium, VAT is not an "output" tax. VAT must have its own rate and output tax must have its own separate one. For example, if output tax rate is 10%, then a VAT rate of 1% must be stipulated. This 1% must apply to flat rate business operators and [0.1%] for non-flat rate operators. Anybody who does not understand this must visit

—George Bobylin Ahu, posted on

Comments and letters may be edited for publishing. Send your letters to or post your comments at these portals:,, or at the other OECD portals on this page.

©OECD Observer No 296, Q3 2013

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

OECD Observer Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Digital Editions

Don't miss

Most Popular Articles

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2020