Myths about VAT compliance

Myths about VAT compliance

It‘s not a secret that there were many changes in global VAT compliance all across the globe and in distant selling so the businesses had to evaluate and create new strategies that should minimize the risk of fines, penalties and other errors or even shutdowns. Also, there are many myths that countries believe about VAT and thus they often fail in their business. For you to avoid, we want to debunk them.

Pro-growth VAT

 

The truth is that VAT penalize all economic activity and consumption taxes equals income taxes. The damage of economic is always identical meaning the harm is rising together with the rising marginal tax rate increase.

 

VAT is pro-investment

 

In truth, the VAT and VAT compliance is the matter that discourage any investment and saving at all. Of course, it is not a lie that people who save earn somethig in return, however that do not change the calculation even though they will be able to comsume more in the future. But it means that they will consume tax.

 

Pro-trade VAT

 

Mercantilists not only are wrong on the trade, but they also understand how works the VAT. Actually, VAT not only impose on importas, but it does not discriminate foreign produced products and goods.

 

Pro-compliance VAT

 

The fact is that any tax is unwanted and leads to evasion and the same rule applies to VAT. Usually, merchants ask for cash payments in order to escape the taxes and VAT. But the rule to learn is that taxation will always influence and create noncompliance.

 

Overall, there are many myths about VAT compliance, but they are all debunked here, so you can differ the myths and reality. Don‘t run from VAT, because sooner or later it will catch you up and the hurt one will be you. Financially.