This is the final article in the series which discusses the recent developments in the EU, in relation to VAT law reform, and their significance / relevance to the GST in India.
In its Green Paper on the VAT, the EU has highlighted two broad categories of issues for discussion and debate. The first one relates to the principles of taxation of intra EU transactions and this was discussed in detail in an earlier article. The other category of issues relates to legal processes, efficiencies in collection and reduction in red tape and bureaucracy. Put differently, these issues could be categorised as follows:
Ensuring the neutrality of the VAT system Harmonisation of VAT Robust VAT collections Efficient and modern VAT administration Reducing red tape
Accordingly, the Green Paper discusses the above categories of issues, in the context of the VAT reform that is being envisaged.