The elusiveness of neutrality – why is it so difficult to apply VAT to financial services?

Arthur Kerrigan

MPRA Paper from University Library of Munich, Germany

Abstract: Under the VAT system of the European Union, domestic supplies of financial services are exempt. That exemption has significant drawbacks, not least of which is that it compromises the neutrality of the tax. In this article, the author indicates how, depending on government policy views, margin-based financial services could be taxed. He also indicates how financial institutions could give new impetus to the discussion on the VAT treatment of the services in that sector.

Keywords: VAT; Financial Services; neutrality; EU (search for similar items in EconPapers)
JEL-codes: K3 (search for similar items in EconPapers)
Date: 2010-03-18
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published in International VAT Monitor 2.21(2010): pp. 103-112

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:22748

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