The Resource The Dutch VAT compensation fund : a critical assessment

The Dutch VAT compensation fund : a critical assessment

Label
The Dutch VAT compensation fund : a critical assessment
Title
The Dutch VAT compensation fund : a critical assessment
Creator
Subject
Language
eng
Summary
As in the European Union the activities of public sector bodies are not subject to full taxation, the Value Added Tax (VAT) regime may cause distortions in their decision-making, in particular with respect to the choice between self-supply and contracting out of services to the private sector. Several European countries have addressed this distortion via a budgetary solution. In the Netherlands, such a refund scheme was introduced in 2003. This article provides an integral analysis of this scheme based on a broad range of evaluations. As this study shows, VAT only plays a minor role in considering whether to outsource and the introduction did not cause a significant increase in contracting out. Motives other than the budgetary effects might be more relevant. Besides, contracting out was already a trend, regardless of the costs of VAT. The introduction had a number of negative side effects, such as the administrative burden and the budgetary effects, leading to a rather negative opinion of the participating public sector bodies. Therefore, an introduction of compensation schemes in other Member States or a change in EU-VAT law as discussed in a recent Green Paper of the European Commission should be assessed thoroughly, to decide whether the remedy is worse than the disease
Citation source
In: EC tax review. - Alphen aan den Rijn. - Vol. 21 (2012),
http://library.link/vocab/creatorName
Wassenaar, M
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • VAT
  • public sector
Label
The Dutch VAT compensation fund : a critical assessment
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Publication
Label
The Dutch VAT compensation fund : a critical assessment
Publication

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      52.3736660 4.9336932
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