A PROPOSAL BY the European Commission to eliminate certain reduced rates of VAT has been attacked by the Institute of Directors.
The EC’s green paper on the future of VAT proposed the idea of regulation being decided by majority voting, thereby withdrawing the UK’s veto, and standardisation of administrative rules, the VAT threshold and reduced rates, such as the zero rate on children’s clothing in the UK
The IoD said that the advantages of these measures would be “outweighed by the disadvantages of preventing elected governments from adapting VAT to suit the circumstances of their own countries”.
Richard Baron, head of taxation at the IoD, said: “It is sensible for the commission to stand back and take a long, hard look at the way in which VAT operates. It is a massive burden on businesses, and prone to fraud, so improvements are always welcome.
“But we must beware of any assault on national tax powers, or of any tendency to assume that the man in Brussels knows best. We hope that the UK government will resist many of these proposals.”
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...