Source IBFD (Paid access)
European Union
VAT in the Digital Age Proposal: Can DRR Tackle VAT Fraud?
C. Amand
In this article the author discusses the European Commission’s proposal to impose the general use of e-invoicing as well as digital reporting requirements for intra-EU transactions, allegedly with a view to tackle VAT fraud and prevent fragmentation in the internal market. He explains why, in his opinion, the proposed rules are likely to miss its target to close opportunities for VAT fraud and wonders why simpler and more effective alternative solutions not been considered by the European Commission.
European Union
CESOP – The Priorities and the Nice-to-Knows
J. Zutt; M. Timmermans
In order to fight VAT fraud in the e-commerce sector, the Member States have decided to implement a monitoring system for cross-border payments originating from payers residing in the European Union. In this article, the authors discuss the new VAT record keeping obligations that will apply for payment service providers as of 1 January 2024.
European Union
Fluvius Antwerpen: Supplies Hidden in a Theft?
K. Lasiński-Sulecki
In its judgment of 27 April 2023 in Fluvius Antwerpen v. MX (Case C-677/21), the ECJ decided that the supply of electricity by a distribution network operator, even if involuntary and the result of unlawful conduct on the part of a third party, constitutes a supply of goods for consideration entailing the transfer of the right to dispose of tangible property. In this article, the author analyses the judgment as well as the opinion of AG Kokott of 12 January 2023 – in their parts regarding the understanding of the supply of goods – and reaches the conclusion that this judgment contradicts previous case law, or must be understood very narrowly taking into account peculiar legal background of the case in Belgian domestic rules on energy distribution.
Chile/International/United Kingdom
Tax Progressivity in Developing Countries: Redistributive Reforms to Indirect Taxation
S. Gazmuri Barker
Developing countries’ tax systems are characterized by a very high reliance on indirect taxation and a very low (if any) progressivity. In this article, the author tries to provide a deeper analysis linking these two characteristics by exploring what actions are available for developing countries to increase their tax progressivity through their indirect taxes. He also analyses the potential distributional gains of three reforms to the VAT in developing countries. Using Chile as a case study, the analysis is based on empirical data on consumption patterns to assess the distributional impact of these reforms, finding that they have a strong redistributive potential to enhance the tax progressivity in developing countries. It also emphasises the importance of following evidenced-based tax reforms and not simply follow the indirect taxation policies of developed countries. The author draws comparisons with the UK VAT to highlight the need to take a different approach to regressivity concerns of indirect taxation
European Union
The Platform Economy Will Have Its Own VAT Regime in 2025
F.J. Sánchez Gallardo; G. Echevarria Zubeldia
The European Commission has proposed one of the most revolutionary packages of legislative measures on VAT in recent decades, with the title “VAT in the Digital Age” (or the acronym “ViDA”) that affects (i) the transactions made through digital platforms or platform economy; (ii) what has been called “single VAT registration”; and (iii) the way to carry out VAT reporting in the European Union. In this article, the authors explain the rules proposed by the European Commission with respect to digital platforms and point out some technical shortcomings that they hope will be announced after the consultative period or during the revision of the proposed text by the Council of the European Union for final approval.
