VATupdate Newsletter Week 13 2025

OVERGROWDED

Humanity has done a spectacular job of multiplying. From just a few people centuries ago, we’ve skyrocketed past eight billion. It’s an achievement, sure, but also a bit of a problem. More people means more consumption, more housing, more schools, more hospitals, and—let’s be honest—more traffic jams. And yet, despite the already cramped conditions on planet Earth, some governments seem to think we need even more humans. Apparently, eight billion isn’t quite the sweet spot yet.

So, they come up with incentives—baby bonuses, tax breaks, parental leave benefits, and other creative ways to convince people that sleepless nights, endless diaper changes, and future university tuition fees are all part of a fantastic deal. Of course, the main reason behind these incentives isn’t a deep love for newborn giggles; it’s simple economics. Countries need a growing workforce to keep pension systems afloat and tax revenues flowing. If no one is born, who will pay for the next generation’s social security? Robots? (We’re not quite there yet, despite what AI enthusiasts might tell you.)

But let’s be real: every additional human is another seat on an overcrowded train, another queue at airport security, and another person standing between you and the last available parking spot. Society, like a family road trip, has officially reached the “Are we there yet?” stage of frustration. And it also feels unfair that the people with children get more benefits than people without kids. Extra time off from work, child support, the parking spot closest to the entrance of the mall…

This whole situation is strangely reminiscent of VAT. Governments impose it, adjust it, and rely on it as a steady source of income. But the more they tinker with the system—exemptions, reduced rates, special schemes—the more complex and unwieldy it becomes. Just like overpopulation, VAT regulations start with good intentions but quickly spiral into an administrative headache. Luckily, VAT is levied on transactions. If you compare that with tax on profits, it seems that the companies making the highest profits, somehow don’t pay that much tax: do they get child support too?

The good thing is that when you’re stuck in the VAT-mess, unsure of what’s applicable and what’s not, there’s only one place to turn: www.vatupdate.com. Because if life’s going to be complicated, at least your VAT guidance doesn’t have to be.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

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