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EC to amend VAT Directive

The European Commission has proposed (pdf) a series of measures, including changes to the VAT Directive, to prevent and detect VAT fraud. The Commission today adopted a Communication (pdf) presenting a short-term action plan with a list of future legislative measures to enhance the capacity of tax administrations to prevent or …

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Stop

Easier way

A much easier way to cut VAT fraud would just be to abolish VAT (or at least, drastically reduce its scope so it becomes the exception as opposed to the norm). Tax people at the moment they earn their money, not when they spend it. This would also have the benefit that those who earn the most money, pay the most taxes.

An across-the-board switch to a "pay first / claim back later" model (as mere mortals already have to do) also would be effective; but it probably would be overburdensome (and in any case, could still be "gamed" as long as disparate currencies exist within the EU).

Stop

Simple solution

Scrap VAT and collect the equivalent on income tax... much fairer.

Remove a stupid double tax, after all the money I'm spending is what's left over after I've paid tax already

VAT...

.. was originally intended to be a tax on "luxuries", but it seems today that pretty much everything over the barest minimum needed to survive on is now classified as a "luxury".

This tax simply causes more hassle for businesses and should be ditched.

You don't hear about fraud much

Over here in relation to the sales tax(and nobody cares much if you get out of it by buying something out-of-state, though technically you're supposed to send it in yourself in that case). It might also be related to the lower rates, though(8.25% here with state/county/city all figured in).

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