VAT in the digital age

Project

1 Oct 2020 - 30 Nov 2021

Adam Śmietanka

Date:

1 Oct 2020 - 30 Nov 2021
Project duration:

01.10.2020 - 30.11.2021
Partners:

CASE, Oxford Research AB, Wavestone S.A., Hedeos Société d'avocats, Mazars N.V.
Leader:

Economisti Associati

Adam Śmietanka

Economist
Adam Śmietanka is an Economist at CASE. His areas of expertise include data analysis, data visualization, web scraping, and inflation measurement. At CASE, Mr. Śmietanka is responsible for conducting data analysis, economic research, and developing and maintaining CASE’s online monthly consumer price index. His professional experience includes an internship with PwC’s Advisory Team and a … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>

Projects from this author:
- VAT Gap in the EU
  The core objective of this study is to inform in an accurate, timely, understandable, and attractive manner the national administrations, Commission, academic community, and a broader audience on the value, development over time, and difference across Member States of tax gaps and related parameters. More specifically, the study will cover the VAT compliance gap, … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
- VAT compliance gap due to Missing trader intra-community (MTIC) fraud
  Revenues generated by Value-Added Tax (VAT) play an important role in the budgets of European Union (EU) Member States (MS) and the EU; as VAT resource accounts for around 10% of EU own resource revenue and around 26% of MS’s tax revenue. Tax fraud, evasion and avoidance reduce these revenues, and undermine the tax system, affecting … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
- Personal income tax (including Social Security Contributions) gap
  Personal Income Tax (PIT) and social security contributions (SSC) are the core source of government revenue in all EU Member States. In 2020, PIT and SSC contributions across Member States ranged from 49 to 75 percent and accounted in total for approximately 67 percent of total receipts from taxes and social contributions in the EU-27. … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
Author’s projects
Projects from this author:
- VAT compliance gap due to Missing trader intra-community (MTIC) fraud
  Revenues generated by Value-Added Tax (VAT) play an important role in the budgets of European Union (EU) Member States (MS) and the EU; as VAT resource accounts for around 10% of EU own resource revenue and around 26% of MS’s tax revenue. Tax fraud, evasion and avoidance reduce these revenues, and undermine the tax system, affecting … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
- Personal income tax (including Social Security Contributions) gap
  Personal Income Tax (PIT) and social security contributions (SSC) are the core source of government revenue in all EU Member States. In 2020, PIT and SSC contributions across Member States ranged from 49 to 75 percent and accounted in total for approximately 67 percent of total receipts from taxes and social contributions in the EU-27. … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
- VAT Gap in the EU
  Description: The core objective of this study is to inform in an accurate, timely, understandable, and attractive manner the national administrations, Commission, academic community, and a broader audience on the value, development over time, and difference across Member States of tax gaps and related parameters. More specifically, the study will cover the VAT compliance gap, … <a href="https://case-research.eu/project/vat-in-the-digital-age-2/">Continued</a>
Author’s projects

Project description:

Value Added Tax (VAT) is a tax levied on all goods and services supplied for use or consumption within the European Union (EU). VAT is a multi-stage tax calculated, and thus charged, on the value added at each stage of the value chain. It is collected, as a general principle, from businesses through a system of partial payments. At regular intervals, a VAT registered taxable person pays the net VAT due, which is the difference between the VAT charged on its outputs and the VAT on inputs. This system ensures that the tax is neutral for businesses, regardless of the number of transactions.

The digitalisation of the economy poses new challenges to Tax Authorities and to the VAT system due, for example, to the emergence of new business models, or the sometimes-limited capacity of tax administrations to exploit the huge amounts of information that they are more and more able to collect. Nevertheless, digitalisation also creates opportunities, in that it provides new digital instruments and solutions to help Tax Authorities in dealing with their tasks while reducing regulatory costs, and simplifying tax compliance and reporting for businesses. In this respect, any future evolution of the EU VAT system should avoid the creation of new costs for businesses and the fragmentation of the Single Market.

Objectives of the project:

The assignment requires an assessment of the current situation and the likely impacts of a number of policy options (to be refined and further detailed) on three topics related to VAT and the evolving technologies, digitalisation, and innovative business models, namely:

Digital Reporting and e-invoicing;
The VAT treatment of the platform economy;
Single EU identification number, and aspects related to the import One-Stop Shop and the low-value threshold, with a particular focus on SMEs.

The assessment is expected to contribute to the preparation of a future Impact Assessment (IA) and legislative proposal.

Project funding: DG TAXUD

Project leader: Economisti Associati

Project partners: CASE, Oxford Research AB, Wavestone S.A., Hedeos Société d’avocats, Mazars N.V.

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VAT in the digital age

Date:

Project duration:

Partners:

Leader:

Adam Śmietanka

Projects from this author:

Projects from this author:

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