With the introduction of HR 900, there has been renewed interest in the Value Added Tax (VAT) as a revenue tool for Georgia. While the VAT does not appear to be under consideration in the revised version of HR 900, it does remain an interesting and innovative policy option for state tax revenues in Georgia. However, since only two states in the U.S. use a type of VAT, the tax is not familiar to many policymakers and constituents in Georgia. This policy brief provides an overview of the VAT and specifically summarizes the similarities and differences between a VAT and the much recognized general sales tax, or Retail Sales Tax (RST). Future briefs and reports will provide more detailed information regarding VAT experiences and choices. This brief is one in a series of briefs and reports that relate to tax policy options for Georgia.
Jorge Martinez-Vazquez, Sally Wallace, and Laura Wheeler. Overview and Comparison of the Value Added Tax and The Retail Sales Tax. Fiscal Research Center Policy Brief, June 2007, number 156. Andrew Young School of Policy Studies, Georgia State University.