Recent alterations to the Italian tax system
August 30, 2023Everything To Know About Corporate Finance
November 14, 2023
Who was Maurice Lauré
Maurice Lauré is the father of Value Added Tax, VAT was born in Marrakesh, Marocco in 1917.
He studied engineering at the École Polytechnique from which he graduated as Civil Engineer. After World War II he was employed by the French tax inspectorate. In 1952 he helped to create the Direction Générale des Impôts, the new French tax authority.
In 1954 he invented the system for Value Added Tax. He was not the first with this idea. Already in the mid 19th century there were ideas and proposals about a tax which touched every stage of the production process. It was Mr. Lauré, however, who elaborated the practicalities and put it into use.
VAT, or GST as it is named in some countries, has since spread around the globe. It is now, in 2023, applied in 175 countries. About 20 countries, including the United States, instead have a sales tax which is a single layer tax. The main difference between VAT and sales tax is that VAT is charged according to specific rules whereas with sales tax is charged when you assess that the sale is to the final consumer.
From the above it is evident that VAT is one of the most successful inventions, maybe the most, within the field of tax. At least from the Tax Office’s point of view. The big advantage of VAT over sales tax and other consumption taxes is that it forces tax payers at all levels of the production chain to account for it, rather than just the retail step. This makes it much more robust end less prone to manipulation.
Mr. Lauré died in 2001 and is for most people completely unknown. He is a good example of how even modest, normal people can have an enormous impact on society and the world.
_______
Author: Krister Gullström, General Manager at EFF
