After completing the course, students can handle similar problems (the three key issues easily), understand the economic and legal bases of VAT and are skilled to analyze problems from a theoretical point of view.
The establishment of a common market and an economic union require the free movement of goods and services, equal conditions of competition and harmonization of laws as far as disparities between national tax laws impede the successful functioning of the common market. This course focuses on Turnover tax/VAT (in the US: Sales tax). The EC- Treaty is the basis of the advanced harmonization of turnover taxes within the EC. European VAT was laid down in many Council Directives : the First, the Second, the Sixth, the Eighth, the Thirteenth Directive etc.
At the heart of Community VAT legislation was the Sixth Directive, in force for thirty years; it dates from 1977. This Directive and its many amending acts have been replaced by Council Directive 2006/112/EC of 28 November 2006. The objective of the new Directive is to recast all the text without changing existing legislation. The recast brings together various provisions in a single piece of legislation. It provides a clearer overview of Community VAT law currently in force. The value added tax system - the leading system for all turnover taxes nowadays has been introduced in all Member States.
National tax laws have already been harmonized to a large extent. VAT covers the entrepreneurs' economic activities, affects retail prices and is a huge 'revenue raiser' in Member States and for Brussels, as its income depends on value added tax (a small percentage of the national bases of VAT transmitted to the EC). The course aims to familiarize its participants with European Value Added Tax, the VAT-Directives and its amending acts to implement in EU Member States , the limited national sovereignty with regard to the system, the key issues of the taxation taxable transactions and taxable persons - and regarding exemptions. The provisions left Member States no or very little national sovereignty. The case law of the EC Court of Justice on the issues mentioned above has led to a substantive body of law, exceeding 300 decisions. Understanding the value added tax from a European point of view especially Directive 2006/112 includes understanding the national legislation of the Member States. The structure of VAT and some basic concepts (e.g. right to deductions/reclaims and exemptions) will also be briefly studied. The course involves an in-depth analysis of three key issues:
- The legal scope of VAT (territorial application; taxable/non taxable; legal/illegal)
- The concepts of taxable and non-taxable legal persons (e.g. holding companies; groups of companies; concerns; and parent- subsidiary/permanent establishment)
- International and intra-community business: cross border supply of goods and supply of services. Main themes running through the course include the neutrality principle, the VAT system itself and closely linked, the choice between the destination principle and the origin principle. Practical problems in the course manual will lead to:
(1) problem solving on the basis of VAT Directive 2006/112/EC and case law of the EC Court of Justice;
(2) an analysis of current concepts of law, theoretical ideas and principles.
This course is part of the 'Accent indirect tax'. Courses are to attend at Maastricht University.
Please see http://www.maastrichtuniversity.nl/web/Faculteiten/FdR/Doelgroep/AakomendeStudenten/Masteropleidingen
Schedules can be found at www.indirecttax.nl