This work area examines how VAT design and administration influence the competitiveness of European Union businesses in cross-border trade, investment and the evolving global tax landscape. It assesses remaining compliance burdens, particularly in chain transactions, and evaluates the benefits and challenges of destination-based and origin-based VAT systems, including the effects of exemptions without deduction rights.
The research also explores how VAT can support investment in the post-Pillar 2 environment by identifying trade-offs, good practices and opportunities for reform. The objective is to develop policy recommendations that make VAT systems more business-friendly, competitive and consistent with EU principles of fairness and neutrality.
In parallel, the project analyses the interaction between VAT, customs law and excise duties, particularly in the context of the European Commission's VAT in the Digital Age (ViDA) package and broader customs reform, with the aim of supporting efficient and fraud-resistant tax administration across the EU.