A study of the VAT regime and competition in the field of passenger transport

Passenger transport is taxed on the basis of distance covered in each Member State and tax is collected at internal frontiers. Many different tax rates apply to passenger transport across the EU with some Member States applying exemptions and zero-rates. Even within the same Member State competing modes of passenger transport may be taxed differently. The study explores the economic, fiscal and practical effects of a number of alternative taxation structures for passenger transport services performed within the EU.European Union, taxation, VAT, transport

Study on the application of Value Added Tax to the property sector

Immovable property transactions are in most Member States based on concepts employed in the national (civil) laws. The application of the origin principle causes (additional) difficulties because of the different concepts employed in the national laws. In order to achieve a more uniform approach, we prefer to draft legislation by means of regulations instead of directives. Moreover, inequalities between Member States will be reduced if terms used in the regulations are defined precisely. With regard to immovable property transactions this means that terms as immovable property, accommodation in the hotel sector, permanently installed equipment, right in rem, lease, etc. may not longer be interpreted from a Civil Law perspective, but it is preferable to give a definition in the VAT regulation. In this respect we advice to develop a clear definition of the terms immovable property, building, land and building land into the VAT legislation.European Union, taxation, VAT, property sector

Reforming the taxation of multijurisdictional enterprises in Europe: a tentative appraisal

In 2001, the European Commission proposed replacing the current system of taxation of multinational companies by the taxation of a consolidated base, computed at the level of all the European entities of a multijurisdictional enterprise, and then distributed for taxation purposes between the various jurisdictions in which these entities operate, according to preestablished criteria. In this paper, we propose a tentative appraisal of that reform based on a case study and an analytical exercise. We especially focus on two related issues, the choice of the formula and the composition of the consolidating area – either the entire EU or some Member States within an Enhanced Cooperation Agreement –, and on their impact on the size and interjurisdictional distribution of tax revenue and social welfare, and on the intensity of tax competition. Our tentative policy conclusion is that this paper supports the reform provided that some conditions are fulfilled