[adrinavarro]

VAT only applies to consumption by citizens of a country. Not enterprises, not foreigners. If anyone were to sell services to foreign companies or individuals, they wouldn't generate taxes. If they were made mandatory, then their services would be at a serious competitive disadvantage because foreign companies couldn't get a tax refund in their local country.

In short, this plan is very very bad. Taxes are somewhat complicated, but they're designed this way for a reason, and there's a reason why nearly all countries have somewhat similar systems.