Presumptions on the place of supply for digital B2C services
(2020) HARN60 20201Department of Business Law
- Abstract
- According to Art. 58 VAT Directive digital services are to be taxed at the place where the customer resides. The Implementing Regulation provides certain presumptions for suppliers to determine that place. These presumptions are analysed in this thesis regarding their actual compliance effort for companies, as well as the implementation of the destination principle.
But before, the conditions and recognition of the destination principle for cross-border digital supplies on a European and international level are assessed.
This thesis shows, that some presumptions are impossible to determine for suppliers, while others may not sufficiently represent the destination principle. Moreover, it discusses legal problems with the Implementing... (More) - According to Art. 58 VAT Directive digital services are to be taxed at the place where the customer resides. The Implementing Regulation provides certain presumptions for suppliers to determine that place. These presumptions are analysed in this thesis regarding their actual compliance effort for companies, as well as the implementation of the destination principle.
But before, the conditions and recognition of the destination principle for cross-border digital supplies on a European and international level are assessed.
This thesis shows, that some presumptions are impossible to determine for suppliers, while others may not sufficiently represent the destination principle. Moreover, it discusses legal problems with the Implementing Regulation, as it is elaborated that it actually changes the general rule as set out by Art. 58 VAT Directive. The additional guidance for companies given by the Explanatory Notes are used for the interpretation of the presumptions. However, the author concludes, that a coordinated interpretation among the Member States should be provided for the suppliers.
Lastly, the thesis discusses an alternative system for the taxation of digital services similar to a split-payment scheme, which would relief the supplier from the burdensome compliance. This is followed by a brief look at the rules for the determination of the place of supply in other jurisdictions.
The author concludes, that changes to the system should balance the compliance effort and the destination principle. However, the rules have to be designed to allow for an automated determination. Technology should be a key feature for an alternative system. (Less)
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http://lup.lub.lu.se/student-papers/record/9011610
- author
- Naujoks, Erik Jonas LU
- supervisor
- organization
- course
- HARN60 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- VAT, value added tax, place of supply, digital services, cross-border, presumptions, Implementing Regulation, services, determination place of supply, compliance burden, destination principle, split-payment method, OECD guidelines, evidence rule, VAT package, B2C, final consumers, e-commerce, TBE services
- language
- English
- id
- 9011610
- date added to LUP
- 2020-06-12 13:30:21
- date last changed
- 2020-06-12 13:30:21
@misc{9011610,
abstract = {{According to Art. 58 VAT Directive digital services are to be taxed at the place where the customer resides. The Implementing Regulation provides certain presumptions for suppliers to determine that place. These presumptions are analysed in this thesis regarding their actual compliance effort for companies, as well as the implementation of the destination principle.
But before, the conditions and recognition of the destination principle for cross-border digital supplies on a European and international level are assessed.
This thesis shows, that some presumptions are impossible to determine for suppliers, while others may not sufficiently represent the destination principle. Moreover, it discusses legal problems with the Implementing Regulation, as it is elaborated that it actually changes the general rule as set out by Art. 58 VAT Directive. The additional guidance for companies given by the Explanatory Notes are used for the interpretation of the presumptions. However, the author concludes, that a coordinated interpretation among the Member States should be provided for the suppliers.
Lastly, the thesis discusses an alternative system for the taxation of digital services similar to a split-payment scheme, which would relief the supplier from the burdensome compliance. This is followed by a brief look at the rules for the determination of the place of supply in other jurisdictions.
The author concludes, that changes to the system should balance the compliance effort and the destination principle. However, the rules have to be designed to allow for an automated determination. Technology should be a key feature for an alternative system.}},
author = {{Naujoks, Erik Jonas}},
language = {{eng}},
note = {{Student Paper}},
title = {{Presumptions on the place of supply for digital B2C services}},
year = {{2020}},
}