Indirect tax, also known around the world as transaction tax, value added tax (VAT), goods and services tax (GST) or sales & use tax, is one of the top revenue sources for local and national governments worldwide. With many governments still struggling to address massive budget shortfalls, it is not surprising that they are tinkering with indirect tax rules in order to extract more revenue. As a result, the sheer number and variety of indirect tax changes are on the rise. Leaving many predicting that this will inevitably result in more companies being audited and assessed penalties due to non-compliance.
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