Earlier this month the European Commission outlined proposals aimed at making the EU VAT system simpler, more efficient and more robust. If fully realised, complying with VAT procedures, particularly when trading across borders, would be considerably simpler, and the system should be more robust to fraud: hence, the plans represent a genuine improvement. However, significant problems like the plethora of goods and services not subject to the full rate of VAT look set to remain, despite efforts to discourage their use.