Financial considerations arising from the harmonised simplification of VAT in Europe

Abstract

Every country with a modern and efficient economy has to have a good indirect tax system. By 1st January, 1993, all the EU member countries were proposed to have a harmonised and simplified VAT System. However, this did not occur, and some member states are still in the process to arrive at such a stage. This dissertation will moreover give the whole spectrum of VAT in Europe, from when it was first introduced, how it evolved with the various directives, the latest changes and how it is likely to be structured in the future. It will also give a continual financial consideration of the financial affects that have occurred and are likely to occur. However, to be able to analyse the financial considerations of the harmonisation of VAT, it is important to have a good basic knowledge of how the VAT system evolved from when it was first introduced and how it is proposed to became by the harmonised simplification. All this will be done in the first two chapters. The study would be subdivided in the following manner: