Advanced

A tax advantage contrary to the purpose of VAT provisions

Norman, Stefan LU (2011) HARM53 20111
Department of Business Law
Abstract
One of two conditions for establishing abuse of European law in the area of VAT is that in spite fulfillment of the literal meaning of a VAT directive and national provisions, a tax advantage is gained which is contrary to the purpose of those provisions. First, a comparison of ten examples illustrating different conditions shows that whether it is advantageous or not to be taxed and allowed to deduct input VAT depends on the circumstances of the case. Second, it has been shown that the Court of Justice has used a wide range of synonyms for the word purpose and it has not been entirely consistent in its use of those synonyms. Third, a terminology of purposes has been proposed: Literal purpose, further purpose, still further purpose and yet... (More)
One of two conditions for establishing abuse of European law in the area of VAT is that in spite fulfillment of the literal meaning of a VAT directive and national provisions, a tax advantage is gained which is contrary to the purpose of those provisions. First, a comparison of ten examples illustrating different conditions shows that whether it is advantageous or not to be taxed and allowed to deduct input VAT depends on the circumstances of the case. Second, it has been shown that the Court of Justice has used a wide range of synonyms for the word purpose and it has not been entirely consistent in its use of those synonyms. Third, a terminology of purposes has been proposed: Literal purpose, further purpose, still further purpose and yet still further purpose. Fourth it has been argued that it is a heavy burden on especially small undertakings to know all the purposes of all VAT provisions. (Less)
Please use this url to cite or link to this publication:
author
Norman, Stefan LU
supervisor
organization
course
HARM53 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Value added tax, abuse, purpose, tax advantage.
language
English
id
1977016
date added to LUP
2011-06-29 14:14:53
date last changed
2011-06-29 14:14:53
@misc{1977016,
  abstract     = {One of two conditions for establishing abuse of European law in the area of VAT is that in spite fulfillment of the literal meaning of a VAT directive and national provisions, a tax advantage is gained which is contrary to the purpose of those provisions. First, a comparison of ten examples illustrating different conditions shows that whether it is advantageous or not to be taxed and allowed to deduct input VAT depends on the circumstances of the case. Second, it has been shown that the Court of Justice has used a wide range of synonyms for the word purpose and it has not been entirely consistent in its use of those synonyms. Third, a terminology of purposes has been proposed: Literal purpose, further purpose, still further purpose and yet still further purpose. Fourth it has been argued that it is a heavy burden on especially small undertakings to know all the purposes of all VAT provisions.},
  author       = {Norman, Stefan},
  keyword      = {Value added tax,abuse,purpose,tax advantage.},
  language     = {eng},
  note         = {Student Paper},
  title        = {A tax advantage contrary to the purpose of VAT provisions},
  year         = {2011},
}