Financial Activities in European VAT: A Theoretical and Legal Research of the European VAT System
- reallocation of funds and income vs. the production/distribution/consumption cycle;
- the concept of ‘merit goods’;
- bias to self-supply instead of contracting out;
- preference to integrate vertically in the supply chain;
- applicability of VAT to government regulatory services;
- tax cascading in the public goods and services context;
- administration and compliance burden in government agencies;
- interpretational and implementation difficulties in EU Member States; and
- VAT compensation schemes considered as illegal State aid in the public sector context.
2. The financial sector, money and interest.
3. Consumption and financial activities.
4. The exemptions for financial services.
5. The scope.
6. Taxable person.
7. Taxable transactions.
8. Place of supply.
9. Chargeable event and chargeability of VAT.
10. Taxable amount.
11. Deduction of input VAT.
12. Possible treatments of financial services.
13. Final remarks and future reforms.
List of references.