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    For what its worth try this real example; A local business pays a net £7000 pa vat - thus the change will save it £1000. on the downside, computer systems and accounting systems have to be amended and annual reports changed ( as its in the middle of the year). this isnt just a global thing the collection of Vat requires accounting for every Vat payment and charge - the change and bringing it in - and then changing it back - will certainly cost more than £500 each time. so who gains??? Nothing is created to the wealth of the country by this just more paperwork and wasted man hours!

    If VAT is to be used effectively to stimulate the economy then it should be targetted to those industries that produce benefit to the workers - so that they have more disposable income and at the same time produce something that directly benefits in an end product. Either infrastructure ( although all of that is owneed by foreign companies) or building ( as I have said) or take vat altogether off insulation products ( that at least would see a resultant benefit as well as helping employment.

    Note : I am not taking a political stance here - just a practical one.

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