Value Added Tax: A Comparative Approach in Theory and Practice

by Schenk, Alan; Oldman, Oliver

• ISBN13: 9781571051691
• ISBN10: 1571051694
• Format: Hardcover
• Copyright: 2001-03-01
• Publisher: Brill Academic Pub

Table of Contents

Preface	p. xix
Table of Cases	p. xxi
Survey of Tax on Consumption and Indirect Taxes and Introduction to Value Added Tax	p. 1
Introduction	p. 1
Development of taxes on consumption--a brief review of history	p. 3
Consumption tax--in general and in relation to income	p. 7
Direct and indirect tax	p. 12
Tax structures in developed and developing economies	p. 18
Broadening the base of a tax system	p. 22
Taxes on goods and services	p. 24
The value added tax	p. 25
The proliferation of VATs	p. 26
Overview of the value added tax	p. 27
Methods of calculating VAT liability	p. 35
Glossary of VAT terms	p. 44
Outline of issues pertaining to consumption taxes	p. 49
Discussion questions	p. 50
Development Taxation	p. 52
Economic Differences Among VATs	p. 59
Forms of Consumption-Based Taxes and Altering the Tax Base	p. 65
Forms of consumption-based taxes	p. 65
Methods of altering the tax base	p. 73
Discussion questions	p. 85
Registration, Business Activity, and Taxable Sales of Goods and Services	p. 89
Introduction	p. 89
Registration and the concept of a taxable person	p. 90
Business activity subject to VAT	p. 105
Sales of goods and services	p. 123
Discussion questions	p. 143
Time of Supply and Valuation Rules	p. 147
The timing rules	p. 147
Valuation rules	p. 159
Discussion questions	p. 184
The Tax Credit Mechanism	p. 187
Tax credit for purchases	p. 187
The tax invoice	p. 216
Discussion questions	p. 218
Zero Rating and Exemptions	p. 221
Designing the tax base--in general	p. 221
Taxation of small businesses	p. 250
Discussion questions	p. 255
Introduction to Cross-Border Aspects of Vat and the Service Sector	p. 257
Introduction to international trade	p. 257
Vocabulary of interjurisdictional aspects of VAT	p. 258
Origin vs. destination principle	p. 260
Place of supply rules in international trade	p. 269
Introduction to service industries	p. 285
Excerpts from Kay and Davis, The VAT and Services	p. 285
Services of professional art advisors under state RST	p. 289
Discussion questions	p. 299
Governmental Entities and Nonprofit Organizations	p. 301
Introduction--concepts and a survey of issues and practices	p. 301
Overview of various approaches to the taxation of governments and NPOs	p. 305
Taxation in the European Union	p. 306
Taxation of sales by religious organizations in the U.S. under state retail sales tax	p. 329
Special treatment for diplomats and international organizations	p. 332
Discussion questions	p. 333
Financial Services	p. 335
General introduction	p. 335
Variety of transactions involving financial services	p. 338
Financial intermediation services and the effect of exemption	p. 339
Scope of exempt financial services	p. 352
Allocation of input tax credits between taxable and exempt activities	p. 359
Taxing intermediation services	p. 361
Henderson, Financial Intermediaries Under Value-Added Taxation	p. 372
Discussion questions	p. 385
Insurance	p. 389
Introduction	p. 389
Exemption for insurance other than life insurance	p. 392
Broad-based tax on casualty insurance	p. 394
New Zealand taxation of insurance	p. 396
The Nunn-Domenici USA Tax System	p. 403
Discussion questions	p. 404
Real Property	p. 407
Introduction	p. 407
Array of VAT treatment of real (or immovable) property	p. 408
EU approach to the taxation of real (or immovable) property	p. 412
Cases involving real property	p. 418
Discussion questions	p. 432
Inter-Jurisdictional Aspects of Vat in Federal Countries and Common Markets	p. 433
Introduction	p. 433
EU's commitment to borderless trade within the Union	p. 437
Canadian VATs and the Bird/Gendron dual VAT	p. 447
Varsano's subnational VAT, as modified by McLure's CVAT	p. 455
Origin-based VATs to finance subnational government	p. 468
Proposals to reform subnational taxes in the U.S.	p. 469
Discussion questions	p. 480
Telecommunications, Electronic Commerce, and Transportation	p. 483
Introduction	p. 483
Telecommunication services	p. 485
Electronic commerce	p. 489
Transportation services	p. 497
Proposal to fund relief of disaster victims with a tax on international airfares	p. 502
Discussion questions	p. 503
Transition Rules Under a Value Added Tax	p. 505
Introduction	p. 505
Transition rules applicable to repealed sales tax	p. 507
Timing differences between sales tax and VAT and supplies straddling the VAT effective date	p. 511
Pre-effective date contracts not specifying VAT	p. 523
Other transition issues	p. 524
Discussion questions	p. 524
U.S. Proposals for Taxing Consumption	p. 525
Introduction	p. 525
The USA Tax System: coordinated consumption-based individual and business taxes	p. 527
Gibbons and Graetz VATs replacing most income tax	p. 535
The flat tax	p. 536
National retail sales tax	p. 540
Discussion question	p. 549
Countries adopting VAT and percentage rates throughout the world	p. 551
Consolidated text of the EU Sixth VAT Directive	p. 557
ABA model VAT statute	p. 673
Index	p. 699
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