An Industry-Specific VAT in Michigan – Objective Valuation in The Retail Gasoline Trade

New York adopted an industry-specific value added tax (VAT) to solve problems with virtual intermediaries (room remarketers) under its hotel accommodations tax.[1] The New York VAT resembles the VAT used in the European Union (EU). It is a credit-invoice VAT[2] that subjectively values supplies.[3] Michigan has also adopted an industry-specific credit-invoice VAT, however the targeted industry is the retail gasoline trade. The valuation method is objective, rather than subjective. In…