European Commission: Green Paper on the future of VAT – LITRG response

Published on 2 June 2011

LITRG has responded to the European Commission’s consultation on reforming VAT entitled ‘Towards a simpler, more robust and efficient VAT system’.

There is a need for a holistic approach to the issue of reform. It is not sufficient to look only at the impact on taxable persons – one needs to look at the impact on consumers. In so doing, it is necessary to remember that VAT is a particularly regressive tax and it therefore impacts most on people with low, fixed incomes such as many pensioners and those living on state benefits.

This short submission highlights two issues which impact on:

  • low-income or vulnerable (for example, disabled or elderly) consumers – reforming VAT to remove or minimise reduced rates in favour of a single, standard rate
  • certain individuals running businesses who might struggle with what could be considered unreasonable VAT compliance burdens imposed in individual Member States.

You can access the LITRG response using the link below:

PDF icon European Commission: Green Paper on the future of VAT – LITRG response

(02-06-2011)

Contact: Kelly Sizer (please use form at http://www.litrg.org.uk/ContactUs)

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