I refer to the comment by Dr Cato, the Green MEP, regarding the impending changes to the VAT system, leading to yet more complications for domestic VAT registered businesses. Speaking as a former practitioner of VAT and its predecessor, Purchase Tax, I can assure him that the problem is not the constant changes in the tax, it is the very tax itself.
Value Added Tax was described as a “simple tax” by Anthony Barber, the Chancellor of the Exchequer at the time it was imposed in 1973. Anyone who has had any involvement with it knows that Barber’s comment proved to be totally untrue. VAT has become a lawyers’ and accountants’ paradise. It is far more complicated than Purchase Tax ever was, even though that had been in force since 1940. VAT was only forced on us as a condition of joining the EEC (now the EU).
What Britain needs is to get out of the EU as soon as possible, so that an independent British government will be free to introduce its own system of indirect taxation – free of the horrendous VAT complications forced on us by years of Brussels bureaucracy.
I would suggest that we should abolish VAT and look at a form of Generalised Sales Tax, such as practised in the USA, Australia and other countries. This would be far simpler and cheaper for those having to collect it. It would also allow the Exchequer to make its own decisions free of EU interference.
I would also respectfully point out that the use of the term “VAT Exemption threshold” to which Dr Cato refers, is incorrect. I think he means the VAT registration threshold. Exemption has an entirely different meaning for the purposes of VAT.
Patria Prospective Parliamentary Candidate for Bournemouth West