They should just get rid of VAT, what a mess! It's a horrible piece of bureaucracy!
Is a big problem for keeping a sane free market because it favors the few big companies, at the coast of hurting the million of small and tiny companies that support the economical tissue. It boost also the companies overseas that can eat the market alive. You are making your economy anti-competitive deliberately.
But politicians love it. They love being rewarded with one in each 5 goods and services for the privilege of sitting, doing nothing and not providing any single valuable service for it. (All the services provided are double taxed apart yet).
Is basically institutionalized mobster-bribe, tax-by-pass in each street coin, so is not probably that will end soon.