The VAT System and the European Single Market

Résumé 0

As it ages, the European Union’s VAT system is not doing well. Its weaknesses are being exploited by fraudsters, while its efficiency and neutrality are no longer ensured as a result of its lack of evolution since the 1960s, when it was first conceived. Time has come for a reexamination in the light of the experience of more modern VAT systems around the world. Meanwhile, another approach to intra-EU trade than the one based on exemption and taxation should be considered. This could benefit from the advantages offered by electronic billing so as to deliver the most modern system. Modernization and the simplification that goes along with it are becoming urgent, notably as part of reviewing the exempt and non-taxable areas. In brief, neutrality should be the price for greater efficiency.