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VATupdate Newsletter Week 33 2025

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SHARKS

Summertime is vacation time. For some, that means lounging on the beach, book in hand. For example the EU VAT Directive… For others, it’s more about another type of adventure – like swimming with sharks. On television we’ve recently seen celebrities dive into the water, surrounded by sleek, powerful shadows. It looked dangerous, and yet the show revealed something surprising: sharks are not just predators, but also social animals, capable of cooperation, intelligence, and even friendliness.

Still, the shark metaphor fits VAT rather well.

VAT can feel dangerous. It moves fast, it senses weakness, and if you’re not careful, it can bite. An incorrect invoice, a misapplied exemption, a forgotten reporting obligation – all of these can attract the attention of the tax authorities, who, like sharks, can smell blood in the water from kilometres away.

At the same time, VAT has the same uncanny longevity as sharks, who can live for centuries and navigate vast oceans with precision. The VAT system, too, has survived and adapted, steering through waves of digitalization, globalization, and endless reforms. It is stealthy, often operating in the background, yet it shapes the way businesses trade and governments collect revenue.

And, just like the sharks on that TV show, VAT is not only about risk. When you get to know it, you realize it can be logical, predictable, and even cooperative. The rules of the game – if applied with care – help businesses swim safely through international waters, keeping competition fair and ensuring that the system works as intended.

So, whether you’re on vacation or back at the office, remember this: VAT is like swimming with sharks. Respect the rules, understand their behaviour, and you’ll discover that what first looked frightening can, in fact, be both fascinating and surprisingly friendly.

And if you do happen to hear the theme from Jaws while working on your next VAT return … don’t worry. It’s probably just the tax authorities circling. To feel safe, just dive into the VAT news at www.vatupdate.com.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.


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