I thought VAT models were used because it forces honesty at all levels. If you want to claim back the VAT on your inputs you have to declare them, so the tax de

I thought VAT models were used because it forces honesty at all levels. If you want to claim back the VAT on your inputs you have to declare them, so the tax department can spot a difference between declared inputs and outputs. It’s still possible to fiddle the numbers but harder than pure sales tax.