The aim of this paper is to provide with an accurate estimate of the VAT gap due to shadow economy in the European Union. Shadow economy circumvents the formal taxation system including the VAT. The estimation is based on an econometric model that uses as macro-economic data as drivers for the...

This article explores the compliance burden imposed by the value added tax (VAT), which has traditionally been recognised as one of the more onerous taxes so far as compliance by business taxpayers is concerned. It compares the UK's VAT compliance burden with that experienced elsewhere in the...

This paper is based on a presentation to the GCC VAT conference, hosted by the Dubai Economic Council in Dubai in November 2008. The paper provides a background knowledge of EU Value Added Tax (VAT), focusing on the way in which the EU VAT deals with the common market. The EU has the longest and...

Reduced VAT rates have positive and negative effects. In this article, the authors briefly discuss the main studies available on VAT rate structures and the impact of those structures on tax revenues. They have also developed a method for calculating the “erosive effect” of reduced rates and...

In this article, the author describes the differences between the Member States as regards the VAT regimes currently applicable to financial services and the existing problem that financial institutions, in particular businesses in the banking sector, cannot recover input VAT. In addition, he...

In 2018, the European Council and the UK and Spanish governments each proposed to introduce a Digital Services Tax (DST), to be levied on the revenue of large digital platforms from advertising, online intermediation, and/or the transmission of data. We offer a rationalization of the DST as a...

In a recent decision Shields & Sons Partnership - C-262/16 the European Court of Justice (‘ECJ') has adverted to the nuances of composition scheme in the context of Value Added Tax models. This decision examines the rationale for introduction of such scheme, which is the administrative...

Because crowdfunding is a relatively new phenomenon there is little experience with the VAT consequences of crowdfunding. In February 2015, the European Commission shared its thoughts on the issue in a report to the VAT committee. The VAT committee subsequently adopted guidelines on the VAT...

Private use of company cars by German employees of Dutch employers - or vice versa, private use of company cars by Dutch employees of German employers - currently results in situations of double and non-taxation, respectively. In this article, I have first concluded that the Netherlands applies...

With the joint cases Larentia + Minerva and Marenave Schifffahrt the CJEU once again delivered a judgment in a landmark case on VAT and holding companies. The author questions whether this will be the last case on holding companies or that we can expect more cases in the future, because some...