Three VAT Studies

The second study examines and evaluates VAT coordination in the EU against the backdrop of an analysis of VAT fraud. Carousel fraud is dwarfed by shadow economy fraud and contrived insolvency fraud. The taxation of intracommunity exports is not the solution to VAT coordination problems. Rather the focus should be on cross-border VAT audit, followed up, if necessary, by investigation and prosecution of fraudsters.

The third study argues that value changes in exempt immovable property should be brought into the VAT base, similar to value changes in other second-hand goods that are traded by taxable dealers. This extension of the VAT base should replace the inequitable and distortionary transfer or registration taxes and stamp duties on transactions in immovable property that are currently levied in the various member states.