Is the VAT system fit for the UK economy? The Office of Tax Simplification has carried out a review of VAT and identified several areas of complexity which it has discussed in an interim report ().

On the UK’s VAT registration threshold (£83,000 for 2016-17), the OTS said this is much higher than the EU average of £20,000 and may distort business behaviour, with ‘an unusual number of businesses reporting turnover at levels just below the threshold’.

It cited businesses …