This complexity also led to disputes as people disagreed over interpretation. 2.15 Most European systems do not get involved in these problems because they do not have internal zero-rating. It increases burdens on honest business persons to monitor supplies while not collecting tax, and in distinguishing between taxable supplies and exempt supplies. It opens additional scope for dishonest operators and adds significantly to the burden of the tax authorities. Integration with other taxes 2.16 A further weakness of the VAT was that it introduced a new tax regime without simplifying any existing tax or without any coordination with existing taxes.
Businesses already have to deal with income tax and social security payments.
To these requirements were added the further obligations of the new system, with new payment dates and new procedural requirements. Only limited efforts were made to coordinate with the existing procedures and authorities. This further adds to the complexity and therefore the burden on business. In the reformed system, we are striving for the best possible coordination between taxes. This simplifies the task for businesses and their accountants.