Initially spreading throughout Europe, VAT remained confined to a handful of countries until the late 1960s. Yet, by 2001, according to the IMF, over 120 countries around the World had introduced VAT systems. At present, more than 130 countries apply a VAT system, with the US being the only OECD...

The taxation of financial services is one of the most vexing aspects of a Value Added Tax (VAT). Conceptually, VAT should apply to any fee for service but where financial services are concerned there is a difficulty in identifying the taxable amount, ie the value added by financial institutions....