value added tax, empirical results in some countries and the estimation of vat for iran in 1993

in order to implement vat, various countries have applied different procedures including: manufacturing products, whole sale and consumer price procedures, according to their economic structure. for iran, it is proposed that in the first step, vat be confined to manufacturing products and imports, and after some successful implementation in this earlier step, with achieved experience and knowledge about the implementation problems the coverage can be expanded to retail level. the potential capacity of vat for iran in 1993, is estimated around 29449 billion rials; almost 30% of gdp. meanwhile, the most appropriate solution for administrative purpose is to establish a new organization under the tax revenue department, performing in accordance with direct and indirect tax offices. one of the prerequisites for successful implementation of vat is to register all kinds of goods belonged to all entities and legal enterprises, that are subject to this kind of tax. the most important step to implement vat is to define a tax code to each tax payer, this is an important action in the supervisory and monitoring procedures. also, it is necessary to establish in advance a committee working on the priorities, analyzing problems and challenges, legal aspects, and operational and implementation procedures. the estimated vat for iran in 1995, after necessary adjustments, amounts to 3700 billion rials and the administrative costs is predicted around 62.7 billion rials.