Value Added Tax: A Comparative Approach in Theory and Practice / / Alan Schenk, Oliver Oldman.

• VerfasserIn: Schenk, Alan,; Oldman, Oliver,
• TeilnehmendeR: Oldman, Oliver,
• Place / Publishing House: Leiden; , Boston : : Brill | Nijhoff,, 2001.
• Year of Publication: 2001
• Edition: 1st ed.
• Language: English
• Physical Description: 1 online resource (752 pages)

This comparative examination of Value Added Taxes worldwide covers both theory and practice and is intended for an audience of students, teachers, researchers, government officials, and practitioners. The authors are American law professors, both teachers of courses on VAT and long time members of the ABA's Committee on Value Added Tax (recently the Committee on Alternative Tax Systems). The book begins with an extensive survey of VAT principles as enunciated during the second half of the twentieth century in official reports and by economists and other tax authorities. Included are basic statistical data and an appendix delineating the global spread of the tax together with rates in the year 2000. Thereafter, the authors present the legal concepts and definitions displayed in VAT laws and elaborated by the courts of Europe and New Zealand. Comparison is made from time to time with American experience with state retail sales taxes. Application of VATs to particular activities is examined in separate chapters devoted to banking, insurance, real estate, and nonprofit organizations. Particular attention is paid to cross-border situations whether international, within the European Union and other country groupings, or within federal countries. The special problems of telecommunications, transportation and E-commerce are covered together in one chapter. A feature of the book of particular use to practitioners as well as students and scholars is an appendix of more than 100 pages, which sets forth the consolidated text of the European Union's famous Sixth Directive. It serves as the governing statutory document for the VATs in EU member countries and is the subject of interpretation and application in many of the litigated cases included or referred to in the book. Published under the Transnational Publishers imprint.

Table of Contents

Intro -- Title Page -- Copyright Page -- Table of Contents -- Preface -- Table of Cases -- CHAPTER 1 SURVEY OF TAX ON CONSUMPTION AND INDIRECT TAXES AND INTRODUCTION TO VALUE ADDED TAX -- I. Introduction -- II. Development of taxes on consumption - a brief review of history -- III. Consumption tax - in general and in relation to income -- IV. Direct and indirect tax -- V. Tax structures in developed and developing economies -- VI. Broadening the base of a tax system -- VII. Taxes on goods and services -- VIII. The value added tax -- IX. The proliferation of VATs -- X. Overview of the value added tax -- A. In general -- B. Methods of calculating tax liability -- C. Jurisdictional reach of the tax -- D. Inclusion of VAT in tax base -- E. Inclusion of capital goods in tax base -- XI. Methods of calculating VAT liability -- A. Credit-invoice VAT -- B. Credit-subtraction VAT without invoices -- C. Sales-subtraction VAT -- D. Addition method VAT -- XII. Glossary of VAT terms -- XIII. Outline of issues pertaining to consumption taxes -- XIV. Discussion questions -- Appendix A to chapter 1 - Development Taxation -- Appendix B to chapter 1 - Economic Differences Among VATs -- CHAPTER 2 FORMS OF CONSUMPTION-BASED TAXES AND ALTERING THE TAX BASE -- I. Forms of consumption-based taxes -- A. Introduction -- B. Consumption-based income tax -- C. Single and multistage sales taxes -- D. VAT in the European Community -- W.G. Haydon-Baillie v Commissioners of Customs and Excise -- II. Methods of altering the tax base -- A. Entity exemptions -- B. Zero rating -- C. Transaction exemption -- D. Alteration of base by granting or denying credits -- E. Summary of discussion of exemptions and zero rating -- III. Discussion questions -- CHAPTER 3 REGISTRATION, BUSINESS ACTIVITY, AND TAXABLE SALES OF GOODS AND SERVICES -- I. Introduction.

II. Registration and the concept of a taxable person -- A. Registration - in general -- 1. Registration by most sellers -- 2. Registration by nonresidents -- 3. Voluntary registration -- 4. De-registration -- 5. Transition to registration and de-registration -- B. Concept of a taxable person -- C. Registration of multiple businesses -- Commissioners of Customs and Excise v Marner and Marner -- Commissioners of Customs and Excise v Glassborow and Another -- III. Business activity subject to VAT -- A. Taxable business activity -- Atlas Marketing v Commissioners of Customs and Excise -- Rompelman &amp -- Another v Minister van Financiën and Excise -- B. Personal sales -- Stirling v H.M. Customs and Excise -- C. Small business exemption -- Customs &amp -- Excise Commissioners v Jane Montgomery (Hair Stylists) Ltd. -- D. Employee not engaged in taxable activity -- IV. Sales of goods and services -- A. Consideration -- 1. Introductory note -- Staatsecretaris van Financien v Cooperatieve Aadappelenbewarplaats G.A. -- 2. Further note on consideration -- Customs and Excise Commissioners v First National Bank of Chicago -- B. Supply of goods -- C. Supply of services -- D. Nontaxable transactions -- V. Discussion questions -- CHAPTER 4 TIME OF SUPPLY AND VALUATION RULES -- I. The timing rules -- A. Accrual, invoice, and cash methods - in general -- 1. Accrual method -- Customs &amp -- Excise Commissioners v Moonrakers Gues House Ltd -- 2. Invoice method -- 3. Cash method -- B. Effects of length of taxable period -- 1. Taxable period -- 2. Time to file returns and pay tax -- 3. Cash flow effects -- C. Special rules for certain sales -- 1. Installment or deferred payment sales -- 2. Goods diverted to personal use -- II. Valuation rules -- A. Taxable amount or value of a supply - general rule -- Naturally Yours Cosmetics Ltd v Customs and Excise.

BAZ Bausystem AG v Finanzamt Munchen fur Korpeschaften -- B. Sales free of charge or for a nominal charge -- C. Discounts, rebates, and price allowances -- D. Pledged goods and repossessions -- E. Post-sale adjustments -- Co-operative Retail Services Ltd v Commissioners of Customs and Excise -- F. Related party transactions -- G. Gambling, lotteries, and other games of chance -- Kommanditgesellschaft in Firma KG HJ Glawe Spiel-und Unterhaltungs-gerate Augstelungsges MbH &amp -- Co v Finanzamt Hamburg-Barmbek-Uhlenhorst -- H. Sales to door-to-door sellers and similar independent contractors -- I. Self-supply transactions -- J. Taxable amount - imports -- 1. General rule -- 2. Imports placed in a bonded warehouse -- 3. Imports of previously exported articles -- III. Discussion questions -- CHAPTER 5 THE TAX CREDIT MECHANISM -- I. Tax credit for purchases -- A. Basic input tax credit rules -- 1. Allowance of credit - general rules -- Pelleted Casehardening Salts Ltd v The Commissioners of Customs and Excise -- 2. Credit denied on purchases for exempt transactions and personal use -- Ian Flockton Developments Ltd v Commissioners of Customs and Excise -- Edmond Michael Alexander v The Commissioners of Customs and Excise -- KPMG Peat Marwick McLintock v The Commissioners of Customs and Excise -- BLP Group plc v Customs and Excise Commissioners -- 3. Bad debts -- 4. Treatment of excess input credits -- 5. Impact of change from exempt to taxable status -- B. Used property -- 1. Business-to-business sales of used property -- 2. Consumer-to-business sales of used property -- C. Credit for post-sale price adjustments and refunds -- 1. In general -- 2. Manufacturer's rebates -- 3. Returns and allowances - credit and debit notes -- D. Casual sales by consumers -- E. Japan's system to calculate input credits -- F. Credit on capital goods -- II. The tax invoice.

A. Contents of invoice required on sales -- B. No obligation to issue complete tax invoices -- III. Discussion questions -- CHAPTER 6 ZERO RATING AND EXEMPTIONS -- I. Designing the tax base - in general -- A. Zero-rated sales -- Customs and Excise Commissioners v Colour Offset Ltd -- 1. Zero-rated exports -- 2. Authority to zero rate other transactions -- B. Exempt sales -- Commission of the European Communities v United Kingdom of Great Britain and Northern Ireland -- Yoga for Health Foundation v Customs and Excise Commissioners -- C. Single sale consisting of taxable and zero rated or taxable and exempt components -- Rogers v The Commissioners of Customs and Excise -- Canadian Airlines International Ltd v The Commissioners of Customs and Excise -- Staatssecretaris van Financien v Velker International Oil Company Ltd NV, Rotterdam -- II. Taxation of small businesses -- A. Illustration of the problem of small business under a credit-method VAT -- B. The Japanese approach -- III. Discussion questions -- CHAPTER 7 INTRODUCTION TO CROSS-BORDER ASPECTS OF VAT &amp -- THE SERVICE SECTOR -- I. Introduction to international trade -- II. Vocabulary of interjurisdictional aspects of VAT -- III. Origin vs. destination principle -- A. Meaning and importance of the principle of country of destination and the principle of country of origin -- B. Double taxation of consumer-to-consumer imports -- Staatssecretaris van Financiën v Gaston Schul Douane-Expediteur BV -- IV. Place of supply rules in international trade -- Gunter Berkholz v Finanzamt Hamburg-Mitte-Altstadt -- Wilson &amp -- Horton Ltd. v Commissioner of Inland Revenue -- V. Introduction to service industries -- VI. Excerpts from Kay &amp -- Davis, The VAT and Services -- VII. Services of professional art advisors under state RST -- The Association of Professional Art Advisors.

VIII. Discussion questions -- CHAPTER 8 GOVERNMENTAL ENTITIES AND NONPROFIT ORGANIZATIONS -- I. Introduction - concepts and a survey of issues and practices -- II. Overview of various approaches to the taxation of governments and NPOs -- III. Taxation in the European Union -- Ayuntamiento de Sevilla v Recaudadores de Tributos de la Zona Primera y Segunda -- Re VAT on Postal Transport: EC Commission v Germany -- Open University v The Commissioners -- IV. Taxation of sales by religious organizations in the U.S. under state retail sales tax -- Jimmy Swaggart Ministries v Board of Equalization of California -- V. Special treatment for diplomats and international organizations -- VI. Discussion questions -- CHAPTER 9 FINANCIAL SERVICES -- I. General introduction -- II. Variety of transactions involving financial services -- III. Financial intermediation services and the effect of exemption -- A. Introduction -- B. Principles to guide the taxation of financial services -- C. Taxation of interest -- D. Interest paid on credit sales to consumers -- E. Exempt financial intermediation services -- 1. Introduction -- 2. EU exemption under Sixth Directive -- 3. Effect of exemption -- IV. Scope of exempt financial services -- Commissioner of Inland Revenue v Databank Systems Ltd. -- Barclays Bank PLC v The Commissioners -- V. Allocation of input tax credits between taxable and exempt activities -- Commissioner of Inland Revenue v BNZ Investment Advisory Services -- VI. Taxing intermediation services -- A. Introduction -- B. Israel -- C. South Africa -- D. Canadian flirtation with taxation of intermediation services -- E. The Poddar-English proposal -- F. Proposals in the United States -- G. Credit for VAT on purchases by business -- H. Credit denied for VAT on purchases by consumers: credit when purchase is made for investment.

VII. Henderson, Financial Intermediaries Under Value-Added Taxation.