Elimination of VAT Double Taxation
The European Commission has launched an online consultation on the possible introduction of a mechanism for eliminating double taxation in individual cases.
The consultation document is available at http://ec.europa.eu/taxation_customs/resources/documents/common/consultations/tax/double_taxation_en.pdf.
The document examines two possible approaches:
- Removal of the obligation to pay the amount of VAT demanded a second time until the dispute giving rise to the double taxation has been resolved between the Member States concerned.
- Elimination of the double taxation itself by introducing a procedure for mutual agreement between the tax administrations of the various Member States concerned; if this procedure failed, the matter could be resolved by arbitration.
- Interested parties are invited to submit their comments by 31 May 2007.