This chapter will cover indirect taxation and the discussion of VAT versus expenditure tax versus GST. It will consider a number of key questions: Should the VAT base be broadened? Should VAT rates be uniform across goods more generally? The issues raised by new technologies, the internet and services will also be addressed. It will cover financial institutions and insurance as part of the VAT base. The chapter will assess whether the structure of VAT in the UK has improved and whether there is a rationale for extensive zero-rating. It will evaluate the 6th Directive and compare it to the New Zealand model. It will examine the pros and cons of harmonization and examine coordination issues within the EU and the likely prospects for other options (CVAT, VIVAT etc). In terms of current issues it will focus on the nature and extent of VAT fraud as well as the treatment of international services and financial institutions. Concluding with an assessment of the future for the VAT and different forms of VAT as, in part, forms of corporate income tax.