What are the disadvantages of VAT?

[jatin]

I’ve been reading about Value Added Tax (VAT), and while it’s common in many countries, I’m curious about the downsides. Some say it can be regressive and hit lower-income groups harder, while others mention compliance costs for businesses. What do you think are the main disadvantages of VAT?

 

[brook]

VAT has the ability to hike up prices, strain small businesses with complicated regulations and affect low-income groups more as it is retrogressive. The increased filing and auditing impose additional expense. Businesses are required to have a high level of records and this may decrease efficiency and raise administration.