Improving the Interpretation of Current EU Law to Address VAT Double (non-) Taxation Caused by Divergent National Decisions

This book examines how current EU VAT law can address double taxation and non-taxation caused by divergent national decisions through a rights-based and principles-based interpretation.

Why This Book?

This book focusses on cases of double taxation and double non-taxation that arise when national authorities or national courts decide differently on how VAT law should be applied in a cross-border situation. Both outcomes are harmful. Double taxation is unfair: it undermines the right to property and the right to an effective remedy. Double non-taxation is equally problematic: it distorts competition and damages the functioning of the internal market.

EU law, however, lacks rules and procedures specifically designed to overcome such divergences. Although reform proposals have been advanced in academic discourse and by the European Commission, meaningful legislative change remains constrained by political realities and the requirement of unanimity in tax matters.

Against this background, this book takes a different approach. Rather than advocating new legislation or institutional frameworks, it argues that the tools needed to address double taxation and double non-taxation are, to varying extents, already present in EU law, provided it is interpreted in a more rights-based and principles-based manner. The book draws on the fundamental rights to property and effective remedy, as well as the Union principles of effective VAT collection, sincere cooperation, and VAT neutrality, to develop an enhanced interpretation of existing VAT law.

This results in a framework for the prevention, settlement, resolution, and regularization of divergences. The book thereby contributes to improving the functioning of the EU VAT system in the specific context of divergences causing double (non )taxation.