Advanced

VAT planning in cross-border service transactions: between fundamental freedoms and economic reality

Senyk, Mariya LU (2011) HARM53 20111
Department of Business Law
Abstract
The major question arising in relation to cross-border service transactions is how far a company could go in VAT planning, particularly, by use of fixed establishments, and what should be the limits of acceptable VAT planning. On the one hand, businesses have a freedom to select the most beneficial legal structure and a freedom to conduct their business activity; on the other hand, it is not clear whether tax advantages may still apply to a particular structure if it was aimed essentially at obtaining a tax benefit. The purpose of the thesis is, therefore, to identify the limits of acceptable VAT planning in cross-border service transactions by use of fixed establishments. To that end, it will be considered how the notion of economic... (More)
The major question arising in relation to cross-border service transactions is how far a company could go in VAT planning, particularly, by use of fixed establishments, and what should be the limits of acceptable VAT planning. On the one hand, businesses have a freedom to select the most beneficial legal structure and a freedom to conduct their business activity; on the other hand, it is not clear whether tax advantages may still apply to a particular structure if it was aimed essentially at obtaining a tax benefit. The purpose of the thesis is, therefore, to identify the limits of acceptable VAT planning in cross-border service transactions by use of fixed establishments. To that end, it will be considered how the notion of economic reality and the principle of prohibition of abuse of rights may influence VAT treatment of cross-border service transactions. In addition, a regard will be given to the liability of a supplier for correct determining the place of supply.

In the first chapter of the thesis a regard is given to VAT planning in cross-border service transactions with the use of fixed establishments. The second chapter deals with the concept of economic reality with a focus of its application to determining the existence of fixed establishments and the place of supply. The last chapter concerns the interplay between fundamental freedoms and prohibition of abuse of rights from the perspective of determining the place of supply. (Less)
Please use this url to cite or link to this publication:
author
Senyk, Mariya LU
supervisor
organization
course
HARM53 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
place f supply, economic reality, fixed establishment, Implementing Regulation, cross-border service transactions, abuse of rights, joint and several liability
language
English
id
1981195
date added to LUP
2011-06-30 12:00:35
date last changed
2011-06-30 12:00:35
@misc{1981195,
  abstract     = {The major question arising in relation to cross-border service transactions is how far a company could go in VAT planning, particularly, by use of fixed establishments, and what should be the limits of acceptable VAT planning. On the one hand, businesses have a freedom to select the most beneficial legal structure and a freedom to conduct their business activity; on the other hand, it is not clear whether tax advantages may still apply to a particular structure if it was aimed essentially at obtaining a tax benefit. The purpose of the thesis is, therefore, to identify the limits of acceptable VAT planning in cross-border service transactions by use of fixed establishments. To that end, it will be considered how the notion of economic reality and the principle of prohibition of abuse of rights may influence VAT treatment of cross-border service transactions. In addition, a regard will be given to the liability of a supplier for correct determining the place of supply. 

In the first chapter of the thesis a regard is given to VAT planning in cross-border service transactions with the use of fixed establishments. The second chapter deals with the concept of economic reality with a focus of its application to determining the existence of fixed establishments and the place of supply. The last chapter concerns the interplay between fundamental freedoms and prohibition of abuse of rights from the perspective of determining the place of supply.},
  author       = {Senyk, Mariya},
  keyword      = {place f supply,economic reality,fixed establishment,Implementing Regulation,cross-border service transactions,abuse of rights,joint and several liability},
  language     = {eng},
  note         = {Student Paper},
  title        = {VAT planning in cross-border service transactions: between fundamental freedoms and economic reality},
  year         = {2011},
}