Cross-Border Juridical VAT Double Taxation in the Framework of European Law

This book analyses VAT double taxation from the viewpoint of primary EU law and proposes mechanisms for the resolution of this issue.

Winner of the Maurice Lauré Award 2023 awarded by IFA.

Why this book?

Double taxation is a well-renowned problem in the area of direct taxation, and multiple mechanisms for its resolution based in EU and international law have been implemented over the past decades. In contrast, there is little awareness of the issue of double taxation in the VAT area and currently, there are no cross-border mechanisms for the resolution of VAT double taxation. Considering the ever-increasing globalization and the fact that the majority of states worldwide levy a kind of VAT/goods and services tax, this constitutes a significant problem for businesses. VAT double taxation can arise both in constellations involving exclusively EU Member States and in constellations involving both EU Member States and non-EU Member States and has several implications under primary EU law.

This book analyses the status quo of literature and jurisprudence on VAT double taxation. It describes the phenomenon, the various causes triggering it and constellations in which it might arise in practice, all of which are illustrated by a multitude of examples. It fathoms the consequences resulting from the various subtypes of VAT double taxation under the EU fundamental freedoms and the EU fundamental rights. In its last part, potential mechanisms to resolve VAT double taxation are analysed, reaching from the introduction of a mutual agreement procedure provision in the VAT Directive to the conclusion of bilateral VAT double taxation treaties. The book sheds light on the distribution of the necessary competences to implement the potential VAT dispute resolution mechanisms between the European Union and its Member States and the distribution of competences between the Court of Justice of the European Union and alternative dispute resolution bodies. After having read the book, the reader will have gained a comprehensive overview of the relevant primary EU law aspects of VAT double taxation.