VAT on Intra-Community Trade and Bilateral Micro Revenue Clearing in the EU

21 Pages Posted: 8 Sep 2009

See all articles by Christian Breuer

Christian Breuer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Chang Woon Nam

CESifo (Center for Economic Studies and Ifo Institute); Ifo Institute, Germany; University of Applied Management (UAM)

Date Written: August 2009

Abstract

This study discusses European Commission’s recent proposal to combat VAT fraud by taxing intra-Community supplies at a common rate of 15%, accompanied by the internal correction of input-tax gap between an importer and his own national tax authority, which is caused by the national VAT rate differing from 15%. It attempts to put this proposal into perspective by linking it to the overall aims of value added taxation in Europe and by comparing it to other alternative mechanisms examined in the literature. Especially issues of bilateral VAT revenue clearing between EU countries, which arise from the Commission’s proposal, are highlighted.

Keywords: value added tax, intra-EU trade, bilateral micro clearing, VAT fraud, European Union

JEL Classification: H87, H20

Suggested Citation

Breuer, Christian and Nam, Chang Woon, VAT on Intra-Community Trade and Bilateral Micro Revenue Clearing in the EU (August 2009). CESifo Working Paper Series No. 2771, Available at SSRN: https://ssrn.com/abstract=1470000 or http://dx.doi.org/10.2139/ssrn.1470000

Christian Breuer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Chang Woon Nam (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Ifo Institute, Germany

Munich
Germany

University of Applied Management (UAM) ( email )

Am Bahnhof 2
Erding, 85435
Germany

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