Value-Added Tax (VAT) is considered an efficient and neutral form of taxation. Yet, although its invoice-credit method and the system of fractioned payments make it a self-policing tax, the VAT can be rather complex and costly to administer for businesses, which spend significant time and resources to comply with obligations associated with this tax.
VAT complexity eventually surrounds also basic concepts. A case in point is the category of ‘taxable persons’, one of the main pillars of European (EU) VAT, as it defines the personal scope of the tax.
Source Kluwertaxblog
