The OECD hosted a forum on VAT in Paris last month. Over ninety delegations with experts representing over eighty countries from all continents, International Organisations, the business community and academia attended the Forum. The OECD is also working on the development of International VAT Guidelines which are due to be launched in 2013.

In his closing speech at the Formun, Angel Gurría, OECD Secretary-General identified the following key findings from event:

• VAT policies play a strategic role in economic recovery efforts, but evidence-based research is required on issues such as the appropriate share of VAT in the overall tax mix, the design of growth-friendly tax policy, options for VAT base-broadening, and policies for addressing social and distributional concerns raised by VAT reforms.
• VAT systems need better administerion VAT to promote economic activity and eliminate VAT fraud.
• Well designed and coordinated VAT systems are essential to remove barriers to international trade. Badly designed and uncoordinated VAT systems distort trade through double taxation and create risks of under-taxation and loss of revenue for governments and large revenue risks and high compliance costs for businesses.

For full details on the Forum see the OECD website at http://www.oecd.org/tax/