VAT is a complex system that encourages fraud, which encourages expansion of tax collection and investigation forces. It is also treated differently from income

VAT is a complex system that encourages fraud, which encourages expansion of tax collection and investigation forces. It is also treated differently from income tax. As any tax advisor in Europe will tell you, disparities in VAT reporting and payments/claims are treated with more suspicion by the tax authorities than similar issues with income tax. It is sometimes called a 'punitive tax', because the default behaviour of tax authorities is to fine you. The cost of compliance is also prohibitively high, even if you find an agent who will deal with various EU members' tax authorities, some (hello, France and Germany!) require suppliers to register and report/pay directly. It is a Byzantine system that's designed to stop growth, exclude small businesses, and entrap taxpayers. As a European, I would love for it to go to hell and never come back.