The one-stop-shop in VAT and RST: common approaches to EU-US consumption tax problems
In March 2004 the European Commission solicited comments on a proposal to simplify value added tax (VAT) obligations through a one-stop scheme.[1] The proposal was modest in scope. It was designed to build upon the success of a similar scheme[2] that dealt with non-EU established persons supplying digital products to non-taxable EU persons.[3] That scheme [...]
How to Raise $1 Trillion without a VAT or a Rate Hike
We should be able to raise at least $1 trillion more revenue a year within the current income tax system just by making our tax accounting better reflect economic income. Our system has too many tax pits, which absorb revenue and distort investment decisions. We allow deductions for fictitious losses. We should tax high-class consumption [...]
VAT Fraud: MTIC & MTEC – The Tradable Services Problem
Tradable services – VoIP termination services, mobile minutes, software as a service (SaaS), or almost any service bought or sold in the “cloud”[1] – are a distinct class of taxable supplies. These service-based supplies both resemble and differ fundamentally from goods. They also differ from services that are consumed-on-purchase (consumed services). Restaurant meals, auto repairs, [...]
Use And Enjoyment Of Intangible Services: The Czech Republic’s VAT Derogation
On January 1, 2009 a minor change in the Czech Republic VAT[1] became effective. A use and enjoyment standard was added to modify the sourcing of certain service transactions.[2] Traditional proxy-based rules, derived from Articles 43 and 56(1) of the Recast VAT Directive (RVD),[3] are set aside by this modification when the customer receiving the [...]
Transfer Pricing in VAT/GST vs. Direct Taxation: A Paper On The Topic Of Relations Between Associated Companies
Two caveats open this paper, one dealing with the scope of analysis, the other with the results we are expecting. First, the scope of this inquiry needs to be broadened. Even though the topic asks that we limit ourselves to VAT/GST and direct taxes, in most jurisdictions there are three (not two) spheres of transfer [...]
German VAT Compliance – Moving One Step Closer To Automated Third party Solutions
Recent developments in German VAT compliance, notably the imposition of criminal penalties for failing to immediately amend a preliminary return that is known to be in error, are leading businesses to third-party VAT solutions.[1] Germany is not alone in the creative use of criminal enforcement to collect the VAT,[2] but the size and importance of [...]
VAT Fraud as a Policy Stimulus – Is the US Watching? VAT Withholding, RTVAT, and the Mittler Model
The EU VAT, like most mature tax regimes, is resistant to change. Fraudsters are testing this resilience today, and this may not be such a bad thing for policy-makers. Significant challenges produce significant reforms proposals.[1] If the US is seriously considering a VAT it would do well to observe this dynamic, avoid the known pitfalls, [...]
An Industry-Specific VAT in Michigan – Objective Valuation in The Retail Gasoline Trade
New York adopted an industry-specific value added tax (VAT) to solve problems with virtual intermediaries (room remarketers) under its hotel accommodations tax.[1] The New York VAT resembles the VAT used in the European Union (EU). It is a credit-invoice VAT[2] that subjectively values supplies.[3] Michigan has also adopted an industry-specific credit-invoice VAT, however the targeted [...]
Value Added Tax and Sales Tax (comparative overview)
I. INTRODUCTION: The Value Added Tax (hereinafter referred to as VAT) and the sales tax are indirect consumption taxes. Nevertheless, there are substantial differences between them. This paper aims at comparing the VAT, as currently imposed in Republic of Bulgaria and the sales tax, as currently imposed in the Commonwealth of Pennsylvania. The paper will [...]
New York Adopts a VAT
INTRODUCTION Virtual intermediaries (enterprises like Priceline.com,[1] Expedia.com,[2] Orbitz.com,[3] and Travelocity.com[4]) are having a significant impact on state and local revenues. These enterprises (room remarketers) acquire lodging at steep discounts and then resell the accommodations to the public. When rooms are resold the discount the public receives is more modest. The difference is the intermediary’s profit. [...]
Out with the Income In With the Electronic VAT
Out with the Income In With the Electronic VAT income, consumption, value-added,School of Law,law school,Goldberg,VAT,eVAT Author: UMBchannel
Value Added VAT Tax and VAT ~ Definition And What You Need To Know as a Taxpayer
Value Added VAT Tax and VAT ~ Definition And What You Need To Know as a Taxpayer vat, vat rate Author: taxcpahouston024
