In a prior blog, the author highlighted some of the most frequent debates arising from VAT and the public bodies’ activities or, more generally, the activities subsidised by public bodies. One key point for establishing whether public bodies’ activities must be subject to VAT or not relates to the aim of preventing distortions of competition…

The legal framework of the activities carried out by public bodies The Value Added Tax (VAT) is a consumption tax paid by entities or individuals who, independently, carry out an economic activity, whatever the purpose or results of that activity. Although Council Directive 2006/112/EC (the VAT Directive) does not establish a definition of economic activity…

Few events in the last decade have contributed as much to the growth of the digital economy as Covid-19. The pandemic forced entire populations to go into lockdown, working from home became the norm and outdoor activities were limited to a bare minimum out of fear of infection. All these factors have contributed to a…

State of affairs Over the last two decades, eminent scholars and commentators have been highlighting the numerous issues arising from the current regime governing insurance and financial services as laid down in Article 135, 1, (a)-(g) of the Directive 2006/112/EC (“VAT directive“). From the lack of competitiveness of EU financial services businesses versus US counterparts…

Marcos Álvarez Suso (Auditing Department of the Spanish Tax Authorities) The digital economy in the 21st century New business models associated to the so-called digital economy are blossoming in all type of economic activities all over the globe. Among many other examples of increasingly digitalized business we can find online goods sellers, streaming television services, remote…

The classification of transactions comprising several elements, features, and acts[1] is a complicated and prominent issue in the EU’s common system of VAT. It is also a popular topic for discussion and analysis which is often explored in the literature. The purpose of this post is to contribute to that discussion by presenting certain perspectives…

Missing Trader Fraud (“MTF”) is a problem that has plagued tax authorities around the world. It is a form of fraud by which syndicates make use of Value Added Tax (“VAT”) or Goods and Services Tax (“GST”) systems to defraud tax authorities. VAT/GST systems are designed to ensure that in most cases, only the final…

According to l’Echo of July 31st 2020, relying on information published in the magazine Paperjam, the Grand Duchy of Luxembourg has not yet paid Belgium 90 million Euros that had to be transferred before the end of March 2020. This sum is due pursuant to a clearing procedure of VAT and excises collected by the…

Last month, the second edition of the book ‘Fundamentals of EU VAT Law‘ was published.[1] It was written by Herman van Kesteren, Simon Cornielje, Frank Nellen and me. The second edition received a major update and contains – among other things – new key CJEU case law and new EU VAT legislation (such as the…

Since the promulgation of its 1988 Constitution, Brazil has been trying to implement a national VAT. Over the past 30 years, the opposing interests of States and the Federal Government have caused at least three broad tax-reform proposals to fail in Congress. Moreover, several interest groups have also been opposed to changes. Such conflicts of…

In these unprecedented times of the Coronavirus pandemic, governments all around the world are striving to sustain their health systems while managing, as far as possible, the economic damages caused by the pandemic crisis. One of the most compelling economic objectives of every government during this crisis is to keep businesses in operation while preserving,…

Composite supplies are one of the most commonly debated issues under European VAT (EU VAT). Despite its unquestionable relevance as a topic, neither Directive 2006/112/EC (the VAT Directive) nor Council Implementing Regulation (EU) no. 282/2011 (the VAT Implementing Regulation) contain any settled rule providing a clear indication on how to deal with the issue of…