Cross-Border Juridical VAT Double Taxation in the Framework of European Law

Book overview

This book explores VAT double taxation through the lens of primary EU law and suggests mechanisms to effectively address and resolve this issue.

Key themes and topics

Double taxation is a widely recognized challenge in the world of direct taxation, particularly concerning issues like federal income tax and navigating complex tax laws. Over the past decades, various mechanisms rooted in EU and international law have been put into practice to address it. In contrast, there is limited awareness regarding double taxation within the VAT domain, with a noticeable absence of cross border tax issues and resolution mechanisms on this subject. In light of the ongoing global integration and the worldwide implementation of VAT by countries every year, this presents a substantial impact for businesses, hindering potential tax benefits of operating in just one country. VAT double taxation can manifest under various forms, involving only the EU Member States or encompassing both the EU Member States and non-EU Member States, carrying several implications under primary EU law.

This book provides an in-depth analysis of the jurisprudence on VAT double taxation. It explores the phenomenon, delves into the various factors that can trigger it and examines real-world scenarios where it may occur, all with the support of numerous examples. The book also delves into the consequences that stem from different forms of VAT taxes within the framework of EU fundamental freedoms and rights.

In its final section, the book thoroughly evaluates potential mechanisms for resolving the issue, including options that apply like introducing a mutual agreement procedure provision in the VAT Directive to the formation of bilateral VAT double tax treaties. The book also clarifies the allocation of responsibilities for implementing these VAT dispute resolution mechanisms between the European Union and its Member States, as well as the distribution of competences between the Court of Justice of the European Union and alternative dispute resolution bodies.

By the end of this book, individuals will have gained a comprehensive understanding of the key aspects of VAT double taxation within the framework of primary EU law.