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Global Challenges of Indirect Tax
*Shifting the Balance from Direct to Indirect Taxes - PwC 2011
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• VAT/GST systems exist in 156 countries • Eight more considering implementation by 2013
Global Challenges of Indirect Tax
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Business Tax and VAT to merge in China – pilot in 2013, targeting fully
implemented system in 2015
Global Challenges of Indirect Tax
Significant systems changes required and comprehensive testing projects
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Australian GST law expanded by 100 pages and shows no sign
of slowing down*
Australia looking at New Zealand’s GST system for simplification
Global Challenges of Indirect Tax
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Malaysia plans to introduce GST in 2013
Global Challenges of Indirect Tax
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India plans to replace 11 indirect taxes with two GST (Federal and State level)
Global Challenges of Indirect Tax
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Gulf Cooperation Council seeks to implement GST systems by 2012/13*
Syria has deferred VAT implementation until 2012*
Global Challenges of Indirect Tax
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Six of the world’s 10 fastest growing economies are in Africa
Increased oil and mineral output is expected to elevate African economies
Global Challenges of Indirect Tax
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VAT rates in Europe are the highest in the world averaging over 20%
European Commission embarked on a consultation to simplify VAT
Global Challenges of Indirect Tax
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5,500 Brazilian taxing jurisdictions (Federal, State, and Local)
SPED system rolling out across Brazil
Global Challenges of Indirect Tax
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10,287 Sales/Use/Rental U.S. tax jurisdictions
187,688 Individual U.S. tax rules
Global Challenges of Indirect Tax