What is nice about VAT is that you can tax different goods differently. You can have low VAT on essentials, which everyone - poor or rich - needs, but have high

What is nice about VAT is that you can tax different goods differently. You can have low VAT on essentials, which everyone - poor or rich - needs, but have higher tax on luxury items. In that respect, it is similar to a progressive tax, except harder to avoid - even an ultra rich who has "no income" buys stuff. Except of course there are gaping loopholes, for example businesses are effectively exempt from VAT, also you can buy stuff abroad where VAT is lower.