Successful VAT Reform Case Studies

Since gaining independence from the Soviet Union in 1991, Uzbekistan has transitioned from a centrally planned to a market-based economy. For many years, the state retained significant control over key sectors to maintain social stability. However in 2016, Uzbekistan launched an ambitious reform agenda aimed at modernizing the economy and promoting private-sector development.

Suriname replaced its sales tax with a VAT on 1 January 2023 as part of broader fiscal reforms aimed at restoring fiscal stability and modernizing revenue administration. From the outset, however, both the policy design and the administrative implementation of the VAT created structural conditions for excessive refund claims that the tax administration was ill-equipped to manage.

Tax administrations have recently turned to digitalization to boost VAT compliance and reduce evasion. One prominent digital tool is e-invoicing, which requires businesses to issue invoices through government-connected electronic systems. This case study focuses on the experiences in Republic of Korea and Peru and whether mandatory e-invoicing improves VAT compliance.