The cost sharing exemption in EU VAT - Competing purposes and other factors contributing to uncertainty in defining its scope
(2014) JURM02 20141Department of Law
- Abstract (Swedish)
- Det europeiska gemensamma systemet för mervärdesskatt är tyngt av de oundvikliga effekterna av dess undantag från beskattning. Undantaget i momsdirektivets Artikel 132(1)(f) har till synes som funktion att mildra dessa negativa effekter men verkar alltför trögt att tillämpa som det är utformat i dagsläget. Denna uppsats ämnar reda ut vari svårigheterna med tillämpningen av undantaget ligger och peka ut de faktorer som skapar osäkerhet. Argumentationen tar avstamp i generella svårigheter gällande undantag från mervärdesbeskattning och de grundläggande principer på vilka det unionsgemensamma systemet bygger, analyserade i det specifika fallet för kostnadsdelningsarrangemang. En granskning av den svenska implementeringen används för att visa... (More)
- Det europeiska gemensamma systemet för mervärdesskatt är tyngt av de oundvikliga effekterna av dess undantag från beskattning. Undantaget i momsdirektivets Artikel 132(1)(f) har till synes som funktion att mildra dessa negativa effekter men verkar alltför trögt att tillämpa som det är utformat i dagsläget. Denna uppsats ämnar reda ut vari svårigheterna med tillämpningen av undantaget ligger och peka ut de faktorer som skapar osäkerhet. Argumentationen tar avstamp i generella svårigheter gällande undantag från mervärdesbeskattning och de grundläggande principer på vilka det unionsgemensamma systemet bygger, analyserade i det specifika fallet för kostnadsdelningsarrangemang. En granskning av den svenska implementeringen används för att visa effekterna av osäkerheten i implementering på nationell nivå. Observationerna och analysen leder till slutsatsen att tolkningen av undantaget kompliceras av att det är oklart vilken betydelse själva syftet med bestämmelsen har i tolkningsprocessen och att dess konkurrenssnedvridningskriterium är för ospecificerat. Argumentationen leder även fram till slutsatsen att bestämmelsen, till skillnad från andra undantag, bör tolkas mer extensivt för att kunna fylla sin funktion och tjäna sitt syfte i enlighet med momssystemets karaktär som generell beskattningsmetod. (Less)
- Abstract
- The European common system of VAT is burdened by the inevitable effects of its disruptive exemptions. The exemption from tax of cost sharing associations in Article 132(1)(f) of the VAT Directive arguably serves to mitigate these negative effects, but it appears difficult to apply with its current design. This paper pinpoints the difficulties of defining the scope of the exemption and the underlying factors creating them. The discussion is founded on general difficulties regarding exemptions and the basic principles on which the system is based in the specific setting of cost sharing arrangements. A review of the Swedish implementation of the provision is used to illustrate the effects of the uncertainty on national level. The observations... (More)
- The European common system of VAT is burdened by the inevitable effects of its disruptive exemptions. The exemption from tax of cost sharing associations in Article 132(1)(f) of the VAT Directive arguably serves to mitigate these negative effects, but it appears difficult to apply with its current design. This paper pinpoints the difficulties of defining the scope of the exemption and the underlying factors creating them. The discussion is founded on general difficulties regarding exemptions and the basic principles on which the system is based in the specific setting of cost sharing arrangements. A review of the Swedish implementation of the provision is used to illustrate the effects of the uncertainty on national level. The observations and analysis lead to the conclusion that the application of the provision is complicated mainly because the weight its purpose should carry in the interpretation process is not clear and because its non-distortion of competition criterion is too unspecified. The argumentation also leads to the conclusion that the provision, unlike other exemptions, should be interpreted broadly in order to fulfill its function and objective in accordance with the general character of the common system of VAT. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4580364
- author
- Bendz, Astrid LU
- supervisor
-
- Oskar Henkow LU
- organization
- course
- JURM02 20141
- year
- 2014
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- skatterätt, EU-rätt, EU law, tax law, VAT, mervärdesskatt, exemption, cost sharing
- language
- English
- id
- 4580364
- date added to LUP
- 2014-10-30 07:21:02
- date last changed
- 2014-10-30 07:21:02
@misc{4580364,
abstract = {{The European common system of VAT is burdened by the inevitable effects of its disruptive exemptions. The exemption from tax of cost sharing associations in Article 132(1)(f) of the VAT Directive arguably serves to mitigate these negative effects, but it appears difficult to apply with its current design. This paper pinpoints the difficulties of defining the scope of the exemption and the underlying factors creating them. The discussion is founded on general difficulties regarding exemptions and the basic principles on which the system is based in the specific setting of cost sharing arrangements. A review of the Swedish implementation of the provision is used to illustrate the effects of the uncertainty on national level. The observations and analysis lead to the conclusion that the application of the provision is complicated mainly because the weight its purpose should carry in the interpretation process is not clear and because its non-distortion of competition criterion is too unspecified. The argumentation also leads to the conclusion that the provision, unlike other exemptions, should be interpreted broadly in order to fulfill its function and objective in accordance with the general character of the common system of VAT.}},
author = {{Bendz, Astrid}},
language = {{eng}},
note = {{Student Paper}},
title = {{The cost sharing exemption in EU VAT - Competing purposes and other factors contributing to uncertainty in defining its scope}},
year = {{2014}},
}