July/August 2015  
IVM Preview IBFD, Your Portal to
Cross-Border Tax Expertise
International VAT Monitor
This free e-mail service informs you about the contents of the forthcoming edition of International VAT Monitor.

Issue No. 4 - 2015 of the International VAT Monitor is now available online.

Visit www.ibfd.org for more information about IBFD publications and services.

Archive | Subscribe to other Journal Previews

P.O. Box 20237
1000 HE Amsterdam
The Netherlands
Tel: 31-20-554 0176
Fax: 31-20-622 8658

Other publications and courses available on VAT:


IBFD Dialogues on International Taxation @ IFA 2015

Immediately after IFA technical session at IFA Basel, IBFD will be organizing a seminar with focus on future developments.
> Register now

Tax Planning and Substance
21-22 September 2015
> Read more

You can also view this content on your mobile via m.ibfd.org.
Number 4 - 2015 contains the following:
Turning VAT Inside Out
Gorka Echevarría Zubeldia
The Interaction between Head Office, Branch and VAT Grouping: New Challenges Ahead for the European Union
Rahiela Abdoelkariem and Frank Prinsen
In this article, the authors discuss how the boundaries of the VAT taxable status are set for a head office and a branch in a cross-border situation, and if a branch could qualify as an independent taxable person for VAT purposes, despite the fact that it forms a legal entity with the head office. The authors also consider whether the relationship between a head office and branch changes if one of them is part of a VAT group, taking into account the ECJ decision in Skandia, and other recent developments surrounding this judgment. At the end, the VAT treatment of international cost recharges between a head office and branch is discussed taking into account the OECD’s International VAT/GST Guidelines.
The Place of Supply of Admission to Scientific and Educational Events within the European Union
Christian Amand
The VAT package has simplified the B2B rules of the place of supply of services within the European Union. However, admission to scientific and educational events is still deemed to take place where these events take place. In this article, the author observes that the new rules applicable since 2011 are a source of double taxation and non-taxation. The author also analyses the concept of “undisclosed agent” and of “voucher” with regard to the distribution of tickets regarding admission to events.
Japan Consumption Tax on Cross-Border Supplies of Services
Yuki Nishida
From 1 October 2015, the coverage of Japan consumption tax will be extended to cross-border supplies of electronic services by foreign businesses. In this article, the author explains that Japan extended the coverage of the consumption tax to reinforce the “destination principle”, and to follow international trends. The author also explains the important peculiarities of the new rules implemented in Japan.
VAT’s Superiority: Is the Emperor Dressed like Adam?

Robert F. van Brederode and

Sebastian Pfeiffer

More than 160 countries in the world have some form of VAT. This success seems to confirm the general notion that VAT is the superior form of consumption tax, although in reality external factors have played and still play a significant role in the proliferation process. The authors explain that the VAT’s superiority as a consumption tax seems to have evolved into a dogma and as a premise it is hardly challenged. Therefore, the purpose of this article is to do exactly that.
Taxation of Goods and Services in Pakistan
Bilal Hassan
Under Pakistan’s Constitution, the taxation of goods is allocated to the federation and that of services to the provinces with effect from 2010/11. In this article, the author discusses the vertical and horizontal issues originating from the division of the VAT base between the federal and provincial governments.
What’s in a Name? Prepayments, Deposits, Vouchers and Options
Richard Krever
The VAT treatment of prepayments or deposits for hotel rooms or airline tickets where the customer does not use the service has generated considerable debate and litigation. One view expressed is that the supplier is making the service (room or flight) available so VAT is payable whether or not the customer comes. A second view is that the supply only happens when the service is provided so no VAT is payable if the customer does not arrive and the supplier enjoys a tax-free windfall of the VAT-inclusive price. Both views fail to take into account the commercial reality of what the customer is actually paying for – an option to use the service if the customer chooses to show up and take the room or flight, or walk away and not use the service without any penalty.
Reports from: Argentina, Armenia, Australia, Austria, Bahamas, Bangladesh, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria , Canada, Chile, China (People’s Rep.), Colombia, Croatia, Denmark, European Union, Finland, Georgia, Greece, Guinea-Bissau, Hungary, India, Italy, Kyrgyzstan, Morocco, Norway, Pakistan, Paraguay, Peru, Poland, Puerto Rico, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, St. Lucia, Swaziland, Sweden, and United States.
Case notes from: Austria, Canada, Finland, Nigeria, Poland, Russia, Sweden and United Kingdom.
Judgments in cases: C-678/13, C-97/14, C-161/14 and C-256/14; Opinions in cases: C-595/13 and C-105/14; an Action in case: C-22/15; and Preliminary ruling requests in cases: C-40/15, C-120/15, C-130/15, C-208/15 and C-217/15.