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   March/April 2009  
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International VAT Monitor
This free e-mail service informs you about the contents of the forthcoming edition of the International VAT Monitor.

Issue No. 2 - 2009 of theInternational VAT Monitor is now available online.

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Other publications and courses available on VAT:

A Guide to the European VAT Directives, 2009 [book]
This annual publication provides a comprehensive overview of the most essential parts of VAT Directives in Europe

European VAT Database [online] The most comprehensive online service on the law and practice of VAT and indirect taxes.

Transfer Pricing and Business Restructurings [book] Considers not only VAT issues but also customs duties in relation to business restructuring.

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Number 2 - 2009 contains the following:
TNS newsfeeds
The online version of this journal now features TNS newsfeeds on its homepage, which provides news in real-time and grants faster access to the latest relevant tax developments.


Thoughts on the Interaction between VAT, Prices and Fraud in the Current Economic Crisis
Marlene Botes
pp. 97-99
The New EU Place-of-Supply Rules from a Business Perspective
Ine Lejeune, Silvia Kotanidis and
Sofie Van Doninck
pp. 100-110
From 1 January 2010, new rules apply for the purpose of determining whether or not services are subject to VAT in one of the EU Member States and, if they are, in which Member State the VAT liability arises; in other words, new rules will determine where services are deemed to be supplied for the purposes of the VAT system of the European Union. This article highlights the main issues that, based on a technical analysis and on practical examples, require further guidance and clarification at an EU level to avoid risks such as double taxation and non-taxation.
Transitional Restrictions on the Right to Deduct EU VAT
Dr Joep J.P. Swinkels
pp. 111-119

Restrictions on the right to deduct input VAT are costly features of the VAT system and, for that reason, draw the attention of businesses. The current VAT Directive provides that the Council must determine the expenditure in respect of which VAT is not deductible and adds that VAT is under no circumstances deductible in respect of expenditure which is not strictly business expenditure, such as that on luxuries, amusements or entertainment. This article briefly examines the scope of the exclusions from the right to deduct input VAT, the legal history of that provision, its interpretation by the European Court of Justice (ECJ) and the issues pending before the ECJ. 

Merger of Business Tax into VAT in China
Xiaoqiang Yang
pp. 120-123
With effect from 1 January 2009, the scope of a local experiment to allow businesses to deduct VAT in respect of the purchase of equipment was extended to all businesses nationwide. According to the legislative plan, the congress will adopt a VAT Law within five years. In the framework of that reform, one of the main issues is the relationship between VAT and business tax. The final result seems clear: in the future, business tax will merge into VAT .
VAT in Bangladesh
Mohammad Faridul Alam and
Nikhil Chandra Shil
pp. 124-130

VAT was introduced in Bangladesh in 1991 and replaced the outdated excise duty and sales tax. This shift was motivated by the arguments that, as compared to sales tax, VAT has a higher revenue-raising potential and that its collection and administration are more economic, efficient and expedient. Despite its limitations, VAT has become the single largest source of government revenue in Bangladesh. In this article, the authors describe the key features of the VAT system, including some of the most important problems and possible solutions to overcome them.

Overview of General Turnover Taxes and Tax Rates
Fabiola Annacondia and
Walter van der Corput
green take-out section

Most countries apply a general turnover tax, i.e. a tax on essentially all goods and services supplied by manufacturers, traders and service providers. Those turnover taxes are levied under a VAT type of tax system or as a single-stage (retail) tax. This take-out section presents an overview of those turnover taxes and the tax rates applicable on 1 January 2009.

pp. 131-155
Reports from: Argentina, Australia, Austria, Belgium, Benin, Brazil, Burkina Faso, Cameroon, Canada, Central African Republic, China (People’s Rep.), Croatia, Czech Republic, Denmark, Djibouti, European Union, Fiji, Finland, Germany, India, Ireland, Laos, Latvia, Liechtenstein, Macedonia, Madagascar, Moldova, Netherlands, New Zealand, Russia, Singapore, Slovenia, South Africa, Sri Lanka, Switzerland, Togo, Tunisia, Ukraine, United Kingdom, United States, Vietnam and Zambia .
pp. 155-166
Notes on cases from: Australia, Austria, Canada, Czech Republic, Germany, India, Russia, Switzerland, United Kingdom and United States.
pp. 167-171
Judgments in cases: C-515/07 and C-1/08; Court’s Orders in cases: C-151/08 and C-156/08; an Opinion in case C-29/08; and Preliminary rulings in cases: C-473/08, C-536/08, C-538/08, C-539/08 and C-581/08.