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Refereed articles

Between tax competition and tax harmonisation: Coordination of value added taxes in SADC member states - p 119

This paper examines strategies which can be adopted for achieving regional integration through the harmonisation of value added tax (vat) laws in Southern Africa. The paper looks into the extent to which harmonisation of vat in SADC member countries can be used as one of the tools towards economic integration and development.

This paper examines strategies which can be adopted for achieving regional integration through the harmonisation of value added tax (vat) laws in Southern Africa. The paper looks into the extent to which harmonisation of vat in SADC member countries can be used as one of the tools towards economic integration and development. The other related important aspect which this paper looks into is the issue of harmonisation of vat laws and the question of tax competition in the broader context of impacting on economic activities of member countries and their full integration process. Where vat policies of countries within an economic grouping are not harmonised, tax competition is likely to arise as a result of differences in the tax treatment of goods and services in these countries. This analysis is especially applicable within a process of economic integration, for example, in a common market or economic union or a customs union. 11 of the 15 SADC member states have introduced vat, while four other countries without a vat have alternative domestic indirect tax systems. It is imperative that the four SADC member states should consider introducing a vat for tax harmonisation in this area to progress.

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