VAT v GST
VAT is a European tool to replenish its coffers. It is gaining popularity with some Asian developing or developed countries to adopt VAT, although slowly building up from a small digit to two digits. Singapore is no exception, but with GST.
Quote
For resident corporations Singapore is not particularly tax-friendly- the corporation tax rate is 18%, and it is charged on all income derived from sources in Singapore, together with income from sources outside Singapore if received in Singapore.
In place of VAT and import duty, Singapore levies a 7% Goods & Services Tax from which exporting businesses are exempted. There are however a number of beneficial tax regimes available to the international investor…Unquote
The US is looking for a panacea and this is triggering outcries as from such articles as:
Into the VAT
Cross ref
http://idkitana.wordpress.com/2009/10/18/into-the-vat-as-a-panacea/
