New article "A comparative analysis of VAT grouping schemes from a Nordic perspective – aspects of tax avoidance and fiscal competition" – University of Copenhagen

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06 June 2017

New article "A comparative analysis of VAT grouping schemes from a Nordic perspective – aspects of tax avoidance and fiscal competition"

Assistant Professor and Postdoctoral Fellow Karina Kim Egholm Elgaard, member of FIRE – Fiscal Relations Research Group and WELMA – Legal Studies in Welfare and Markets, has just published an article “A comparative analysis of VAT grouping schemes from a Nordic perspective – aspects of tax avoidance and fiscal competition”, Nordic Tax Journal, 2017; aop.

See the article here.

Abstract: Value-added tax (VAT) grouping schemes, whereby several legally independent entities are treated as a single taxable person for VAT purposes, are well known, though their detailed rules differ from country to country. This article deals with specific tax avoidance and fiscal competition aspects of VAT grouping schemes in Denmark, Norway, and Sweden. The article gives examples of tax abuse and avoidance by using various VAT grouping models, with the main emphasis on the practice in Denmark, which may be indicative of similar problems in other countries. The article shows that there are significant differences in the rationales for national VAT grouping schemes, and these indicate that there are mismatches between the national schemes of the EU Member States and the original intention of the EU scheme. Finally, an examination of the different national rationales shows the necessity of striking a balance between combating tax avoidance and preventing distortion of competition.

See more about Karina’s postdoctoral project.