With a NRST this guy could be totally lost to the system.
Hate to tell you but under the VAT red tape there are more of them and they don't deal with businesses. They operate out of home and are generally barter, service and home manufacture/grown produce oriented.
OTOH, under the NRST the small guy can sell his services and home production to businesses without tax ramifications or redtape. That provides legal avenues to avoid the tax system at the production level, which is what is intended, and brings production to retail market nevertheless assuring a higher compliance rate for the NRST.
Under the NRST with less red tape, there are fewer blackmarket folks, and when they purchase that which they cannot manufacture, they pay the same NRST as everyone.
All the VAT does is ensure there are more folks treated like criminals and everyone pays a higher price for the costs induced by the high regulatory environment that all legal businesses must operate under with a VAT.
Hate to tell you but under the VAT red tape there are more of them and they don't deal with businesses. They operate out of home and are generally barter, service and home manufacture/grown produce oriented.What VAT red tape? How is a VAT much more difficult to comply with than a NRST?
They operate out of home and are generally barter, service and home manufacture/grown produce oriented.This person could just as easily evade a NRST. Actually, easier. He is paying some inputs, even if it's gas to deliver his goods or a hoe for the garden.