From a tax model design perspective, Brexit opened up all the possibilities for the UK’s VAT system. It is currently unwieldy and complex, costing taxpayers due to its inefficiency. Radical changes to simplify and modernise the UK VAT system would likely have considerable benefits, in terms of simplification, legal certainty and overall efficiency. However, it would come with a price, and some businesses would lose. The lack of political appetite for this is likely to mean that radical changes will not be on the cards for a long time, if ever (remember the pasty tax!).
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From a tax model design perspective, Brexit opened up all the possibilities for the UK’s VAT system. It is currently unwieldy and complex, costing taxpayers due to its inefficiency. Radical changes to simplify and modernise the UK VAT system would likely have considerable benefits, in terms of simplification, legal certainty and overall efficiency. However, it would come with a price, and some businesses would lose. The lack of political appetite for this is likely to mean that radical changes will not be on the cards for a long time, if ever (remember the pasty tax!).
If you are not a subscriber, subscribe now to read this content.
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