Sunday, September 30, 2007

CROSS COUNTRY ANALYSIS

Those labeled with Y are the goods that are VAT exempted. Notice that among our fellow Asian countries the Philippines has the highest number of goods and services which are VAT exempt at the rate of 10% VAT. Those that are highlighted such as the sale/importation of coal and natural gas; sale or importation of raw materials in the manufacture of petroleum products; importation of cargo vessels; sale by agricultural cooperatives; sale by electric cooperatives; gross receipts or multipurpose cooperatives; sale by non-agricultural, non-electric and non-credit coops; sale,imporation, printing or publications of books and newspaper, magazine;and services rendered by doctors of medicine and lawyers are among the goods and services which will no longer be VAT exempt after the implementation of the E-VAT law; in addition the rate will also be increased from 10% to 12%.

Comparing the VAT rates from across countries Cambodia has a 10% rate , Indonesia and Vietnam has a 10% VAT rate, Thailand and Singapore both have 7% VAT rates, Laos has a 3-15% sales tax rate, Malaysia has a 5%-10% Sales tax rate and Myanmar has a 5-30% sales tax rate.

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