The aff cannot solve for any of their impacts because first, they must establish effective audit mechanisms – without it, VAT will fail

What are the main administrative problems? The introduction of a VAT can facilitate substantial improvements in overall tax administration, particularly the establishment of more integrated tax administration organizations and the development of modern procedures based on voluntary compliance. But there have been some significant weaknesses in the VAT's implementation in developing and transition countries: the lack of coordination of the direct and indirect tax administrations, which are not yet integrated in a number of countries; the difficulty of implementing workable self-assessment systems, under which taxpayers declare and pay taxes on the basis of their own calculations, subject to the possibility of later audit by the tax authorities;

the need for effective audit programs based on risk-analysis selection methods; and the need to give prompt refunds of excess credits to certain taxpayers, particularly exporters. (Because exports are zero rated, exporters will have no output tax liability but will be entitled to a refund of the tax paid on their purchases.) The refund issue has become increasingly problematic in many countries in recent years. There is a troublesome tension between the importance of assuring prompt refunds—without which the VAT loses many of its economic merits—and the desire of governments to guard their revenues against fraud and the temptation they face to strengthen revenues by simply delaying refund payments. Indeed, we find that refunds are the VAT's Achilles heel. Tax policy advice in this area has been greatly influenced by tax administration constraints because adoption of best practice (which is the prompt refunding of all excess credits) is simply not possible in countries with weak administrative capacity. The lack of effective audit mechanisms is usually the primary cause of these problems, and the importance of developing such capacity may have been underappreciated in much of the advice and technical assistance on the VAT. The IMF currently tends to advise paying refunds only to exporters and, sometimes, businesses importing large quantities of capital equipment, with streamlined procedures for those with established, reliable records in their tax dealing, while imposing some delays and carry-forwards of credits on other taxpayers.