VAT treatment of government procurement : a comparative analysis

Journal
Yang, X.
China (People's Rep.); European Union; United States
International VAT Monitor 2005 (Volume 16), No. 5
FormatPDF
EUR
40
| USD
45
(VAT excl.)

The indirect tax aspects of government or public procurement depend on the nature of the tax. On the assumption that it is desirable to relieve government procurement from the burden of indirect taxes, the solution under a retail sales tax is different from that under VAT. In this article, the author presents a comparative analysis of how the United States and the European Union deal with this phenomenon, and discusses what approach would be optimal for China.