VAT is hideously complicated for both gvernments and businesses. We'd be far better off replacing it with a simple retail sales tax, then all these problems and a huge bureaucracy would simply disappear.

Far and away the UKs biggest export demonstrating that once again our caring sharing government has lost the plot...

That sounds quite good, 6e-5 as a fraction of the whole economy. But wouldn't it be better if business to business orders had no vat on them, not just between countries but also inside them?

Would simplify my TTC return a hell of a lot.

And wouldn't it be nice if I had to complete only 1 vat return in 1 country rather than 1 vat return in each country I do more than 100k of business with? The simpler it is the less opportunities for fraud. It's the damn complexity of it all that creates the opportunity.

And quite frankly, I am fed up with accountants and tax men deciding policy in this area, with their charge backs and intra vat watnots. Hands up who expects a bunch of accountants and tax men to put themselves out of a job?? Not me.

Someone with a grip on the matter and no vested interest should simplify it.

Get rid of VAT and tax on how many windows your home has.

Easy peasy.

>>>>>>>>>>>COAT>>>>>>>>>>>>>>>>>>>>>>

As long as books, food and other essentials remain free of tax. I've always thought that business to business trading inside the EU/EEC should be free of tax not charged, claimed back, recycled, charged at a different rate, duty paid, claimed ad infinitum.

STOP : VAT is the worse tax there is with no progressive element to it at all. From its initial introduction as a "temporary" tax at 2.5% its grown to a massive 17.5%. It should be repealed and replaced with something else.

As for the "masses" avoiding income tax .. well thats a shock mate, wheres your facts to back it up ? I certainly get a wodge taken out monthly, as do most of the people I know. Maybe you are referring to the cash in hand crowd, or maybe you are actually pointing out where the biggest loses of taxable income occur. In the tax avoidance industry that lets rich gits get richer.

VAT isn't actually a tax on consumers (although it appears as such); it is a tax on the 'Value added' by companies all the way up the supply chain.

Firms pay VAT (to the govt) on their sales, but claim back on their purchases. As such, VAT is paid by each firm on the increase in price of the goods that pass through their hands. Regressive? Maybe. Fair? Possibly ('the rich' as referred to by many posters can't avoid VAT). A pain in the arse to administrate? Yes.

VAT was abolished - but only on Gold coins - people were buying gold coins in, say, Jersey VAT free then selling them in the UK for cost + VAT a very nice risk free 17.5% profit!