San Marino To Install VAT This Year, IMF Says

by Ulrika Lomas, Tax-News.com, Brussels

10 April 2017

San Marino is planning to introduce value-added tax (VAT) by the end of this year, the International Monetary Fund (IMF) has confirmed.

The IMF said: "Implementing a VAT will help expand the tax base and secure a steady source of income for the government, while making the tax regime more compatible with the EU system."

It added that he VAT rate should be "set at a level that would increase revenue while taking into account the government's spending priorities."

Further technical work was still needed on the introduction of VAT "to ensure a sizeable revenue from the reform without harming the fragile economic recovery underway," the IMF said.

Meanwhile, the Fund said that additional tax revenues will be needed if the authorities plan to further increase investment, adding that the country needs to improve its tax compliance and collection.

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