Summary
- VEG report (Dec 2024) offers strategic ideas for the EU VAT system beyond ViDA, targeting a horizon of 2050 and beyond. [ivaconsulta.com]
- Focus on closing the“forgotten VAT gap” — inefficiencies borne by legitimate businesses (compliance costs, cash flow, litigation, missed reliefs). [ivaconsulta.com]
- Two‑angle analysis: (i) design of a future VAT system; (ii) practical improvements to today’s system building on ViDA. [vatassociation.org]
Extended article
Presented to the European Commission in December 2024, the VEG report “VAT after ViDA – Reflections on the future of VAT” proposes exploring new ideas beyond the ViDA package (adopted 11 March 2025). The taxpayer perspective stresses that VAT gap analysis typically ignores the burdens borne by compliant businesses — the “forgotten VAT gap”: complexity, fragmentation, dual reporting, blocked input VAT, uncertainty, litigation risk. The report proposes design principles for a future VAT system (2050 horizon) and practical short/medium‑term improvements to bridge today to tomorrow. The initiative aligns with the Draghi/Letta reports on EU competitiveness. [ivaconsulta.com], [vatassociation.org]
Sources:
- IVAconsulta blog
- VEG Report (PDF)
- European Commission – ViDA [ivaconsulta.com]
- [vatassociation.org]
- [taxation-c….europa.eu]
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