- The EU has complex VAT systems that are inefficient
- The UK, having left the EU, can now reform its VAT system to be more consistent and modern
- VAT management is complicated for businesses due to various requirements and penalties for errors
- Tax administrations face challenges due to discrepancies in EU legislation and national implementation
- Simplifying VAT could involve removing all exemptions and applying a single rate
- Political decisions often influence VAT exemptions and reduced rates, which are not effective for income redistribution
- EU-wide VAT reform is hindered by the unanimity rule and longstanding exemptions
- The UK could potentially shift from VAT to a sales tax system post-Brexit
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "European Union"
- General Court T-643/24 (Credidam) – AG Opinion – Unauthorized use of copyrighted works incurs VAT on fees
- General Court T-646/24 (MS KLJUCAROVCI) – Judgment – Triangular transactions can qualify for VAT simplifications despite delivery variations
- Comments on GC T-657/24: VAT exemption for credit intermediation applies when the intermediary searches for and recruits customers
- Briefing documents & Podcasts: VAT concepts explained through ECJ/CJEU cases on Spotify
- ECJ on the relevant sale for determining the transaction value of goods
