This paper reviews the literature and evidence on the possibility of allowing a Foreign Tax Credit (FTC) in the US for the Value Added Tax (VAT) paid abroad. Additionally, reviews the differences between Direct and Indirect Taxes towards the allowance of a FTC; the possible inclusion as a tax...

This paper analyzes transfer pricing incentives under a destination-based and an origin-based VAT system. While a switch to the origin-based VAT may moderate or reinforce the incentive for transfer pricing induced by income tax differentials, we show that in the case of the EU this switch tends...