As noted in Chapter 3, there is a wide diversity in the way countries have implemented VAT. Each country has a specific mix of rates, exemptions, thresholds, etc., derived from local historic, economic and political conditions. However, all governments seek to obtain the best yield from the tax, in particular at a time when many are seeking ways to address large fiscal deficits. Raising the standard VAT rate is often considered to be the easiest way to increase revenues from the tax. However, this has its own limitations, in particular in countries where the rate is already relatively high. Improving the performance of the tax is another option. This includes broadening the tax base, a more limited use of reduced rates and exemptions, more efficient tax administration and better compliance.