VAT requires enormous administrative resources

As with any new tax, implementing a VAT would impose administrative costs on the federal government and compliance costs on businesses. The magnitude of those costs would vary depending on the tax's design and implementation method. Administrative costs to the federal government are not included in the estimates for this option. Implementing a VAT would require the federal government to establish a new system to monitor compliance and collect the tax. Research has shown that at least some countries that have implemented a VAT devote significant resources to addressing and enforcing compliance.