A simpler VAT system would also reduce operational costs for taxpayers and tax administrations, thus increasing net income for the Treasury. It reduces definitional questions (no need to define what is in and what is out of scope); it reduces the need to revise the rules whenever a new tax rate and new types of supplies emerge and is therefore likely to be more future proof than a limited approach which is typically relevant in the digital economy.
A simpler VAT system would also reduce operational costs for taxpayers and tax administrations, thus increasing net income for the treasury. It reduces definitional questions(no need to define what is in and what is out of scope); it reduces the need to revise the rules whenever a new tax rate and new types of supplies emerge and is therefore likely to be more future proof than a limited approach which is typically relevant in the digital economy.
Impact on the reduction of the administrative costs of the companies thanks to the suppression of the declarations of the VAT. The costs of VAT compliance are a major administrative burden for businesses and the reduction of this burden would make a significant contribution to increasing business competitiveness.