A Guide to VAT/GST/SUT in the Americas 2018

Indirect Tax Guidance of 21 Countries in the Americas

Consumption taxes play a crucial role in the Americas, regardless of whether those are assessed as Value Added Tax (VAT), Goods and Sales Tax (GST), Sales and Use Tax (SUT) a Customs duty or excise tax. For tax authorities, indirect taxes are an efficient and often a fair way of raising revenue and we see indirect tax revenues continue to increase as a proportion of tax take around the world. The rules, rates, interpretations and practices are also constantly changing.

For businesses, the administrative and risk burden of indirect taxes often lands heavily. Penalties are generally becoming a greater risk and the changes in indirect tax practices and rules can be difficult to keep up with. Based on these risks and the increased personal responsibility of company leaders, the subject of indirect taxes has risen up the agenda in companies to CFO and board level. Meanwhile, because indirect tax accounting can be affected by so many internal processes within a company, thinking internationally, understanding technology, the set-up of accounting systems and being able to connect with people in many parts of a business has become a crucial part of an indirect tax professional’s life as well as keeping up to date with the changes, the risks and opportunities these present.

Taking a closer look at the Americas, it seems that more and more countries are focusing on the OECD guidelines for VAT; especially on trying to level the playing field for taxpayers and avoiding too many exceptions to rules.

There is an impressive level of e-invoicing, archiving and technology facilitation rules within the Americas too – something that has to be the way forward in our modern world.

Three major VAT reforms were enforced within the Americas in 2018: in Argentina, México and Venezuela; so it feels like it is the perfect time for us to issue this update of the “Guide to VAT/GST/SUT in the Americas” and I trust that this book serves you well as a primary source of information on consumption taxes in the Americas and help us all have a reference point for keeping up to date.

PwC’s Indirect Tax Network is a family of experts with presence in over 150 countries and over two and a half thousand indirect tax specialists. Our global network aims to make your business more efficient, profitable and competitive. We hope to help you make the right decisions for your business.