What do value added taxes (VAT)encourage in countries such as China?

Question

Quizplus · Accepted Answer

Value Added Taxes (VAT) can lead to cross-border shopping as consumers seek to purchase goods in areas with lower VAT rates, thus potentially saving money. This is especially true in regions where countries with differing VAT rates are geographically close to each other, encouraging consumers to shop in a country with a lower VAT to reduce the overall cost of their purchases.

What Do Value Added Taxes (VAT)encourage in Countries Such as China