VAT in a Day

Preface / 5

1 Introduction / 9

2 European VAT and National VAT Systems / 13

3 The Determination Scheme of VAT / 15

4 Taxable Person / 17
4.1 Introduction / 17
4.2 The Function of the Taxable Person Status / 17
4.3 The Consequences of the Taxable Person Status / 18
4.4 The Elements of the Definition of the Term ‘Taxable Person’ / 18
4.4.1 Any Person / 18
4.4.2 Independent / 19
4.4.3 Economic Activity / 20
4.5 The Place of Establishment and the Concept of Fixed Establishment / 22
4.6 Bodies Governed by Public Law / 23
4.6.1 Acting as a Public Body or as a Taxable Person? / 24
4.6.2 Public Bodies and Input VAT / 25
4.7 Holding Companies / 26
4.8 VAT grouping / 28

5 Taxable Transactions / 31
5.1 Introduction / 31
5.2 Supplies of Goods and Services / 31
5.2.1 The Purpose of the Differentiation Between Supplies of Goods and Supplies of Services / 32
5.2.2 Composite Supplies / 32
5.2.3 For Consideration / 33
5.3 The Importation of Goods / 34
5.4 The Intra-Community Acquisition of Goods / 35
5.5 Not a Taxable Transactio: Transfer of a Totality of Assets or Part Thereof / 37


6 The Place of Supply / 39
6.1 The Place of Supply of Goods / 39
6.2 The Place of Supply of Services / 40
6.2.1 Services Supplied to Taxable Persons (B2B-Services) / 40
6.2.2 Services Supplied to Non-taxable Persons (B2C Services) / 42
6.3 Electronic services / 44
6.4 The Place of Importation / 44
6.5 The Place of an Intra-Community Acquisition / 45

7 Taxable Amount and VAT Rates / 47
7.1 Taxable Amount / 47
7.2 VAT Rates / 47

8 Exemptions / 49
8.1 Introduction / 49
8.2 Exemptions Without a Right of Deduction / 49
8.3 Exemptions With a Right of Deduction / 51

9 The Person Liable for Payment of VAT / 53
9.1 Introduction / 53
9.2 The Reverse Charge Mechanism / 53

10 The Right of Deduction of Input VAT / 55
10.1 Introduction / 55
10.2 Proportional Deduction / 55
10.3 Adjustment of Deductions / 56
10.4 Deduction and Private Use / 57
10.5 Non-Taxable Activities / 58

11 The Process of Levying VAT / 59

12 Administrative Obligations / 63

13 Special Schemes / 65

14 Conclusion / 67

About the authors / 69