Studies made for the Commission
|Study on the implementation of the Tax Merger Directive||
The study carried out by Ernst & Young provides a comprehensive overview of the implementation of the Tax Merger Directive (Council Directive 90/434/EEC as amended) in the 27 EU Member States. The purpose of the survey is to enable the Commission to assess the need for further EU-wide action in this area. The main finding of the survey is that most Member States have correctly transposed the Tax Merger Directive, but it has been under-utilised due to the fact that the corporate law allowing cross border mergers has not been in place in many countries up to recently. The findings and conclusions of the study are those of the authors and should not be construed as reflecting the position of the European Commission.
|Study on the VAT invoicing rules contained in the VAT Directive||
A study on the VAT invoicing rules contained in the VAT Directive ( 2006/112/EC) was carried out for the European Commission by PricewaterhouseCoopers. It aims to look at the four principal areas of invoicing - the requirement to issue an invoice, the content of an invoice, electronic invoicing and the storage of invoices - with a view to mapping the existing legislation in all Member States, analysing burdens on business and Member States' control needs, and providing recommendations for a more harmonised and modern set of VAT invoicing rules.
|Reduced VAT for environmentally friendly products||
The study examines the potential use of reduced VAT on environmentally friendly goods and the current application of reduced VAT on energy consumption by households. The analysis is carried out in the context of EU policy approach to climate change and energy security, including interaction with other policy instruments at the EU and national levels. The core of this study focuses on what role - if any - should VAT rate policy play in underpinning these objectives.
|Costs and benefits related to the use of tax incentives for energy-efficient appliances||
The study examines four products with high energy-saving potential: refrigerators, washing machines, boilers and compact fluorescent lamps. The cost-benefit analysis is done in a comparative perspective so that the costs and benefits of energy taxation and a regulatory measure are calculated for the same products. The data from four different Member States (Denmark, France, Italy and Poland) are used in the analysis.
|Alternative systems of Business Tax in Europe (ACE/CBIT)||
Using an applied general equilibrium model for Europe, the study explores the economic implications of an allowance for corporate equity (ACE), a comprehensive business income tax (CBIT) and a combination of these two systems. The key trade-offs in designing ACE and CBIT in the presence of tax distortions are illustrated at various decision margins of firms (financial structure, investment, profit allocation and location).
|Effective levels of company taxation within an enlarged EU||
The project 'Effective tax rates in an enlarged European Union' is based on the methodology used for the calculation of ETRs as set out by Devereux and Griffith (1999, 2003). It extends the scope of the calculation of ETRs conducted under the Company Tax Study (2001) by adding the 12 new EU member States. The study includes a focus on the effects of tax reforms in the EU27 for the period 1998-2007 and their impact on the level of taxation for both domestic and cross-border investment, as well as a partial analysis of SME partnerhips.
|The Potential Benefits of using Differential VAT for Environmental Purposes||
The study looks at the potential impacts of changing current VAT rates to align them with environmental goals in some specific cases - domestic energy supply, food and dairy products, insulation materials, white goods and boilers. It finds that the suitability of differential VAT as a policy instrument differs greatly across products, in particular depending on the nature of the market failure in consumer behaviour which the VAT rate would be trying to correct.
|Study on the possible impact of measures envisaged for fighting VAT fraud (Timeframes)||
In its Communication on the need to develop a coordinated strategy to fight against fiscal fraud ( COM/2006/254) the Commission suggested a series of measures to improve the exchange of information. One of these measures is the reduction of timeframes for the collection and exchange of information on intra -Community transactions. This measure was pointed out by the Council in its conclusions of 5 June 2007 as a priority measure to implement. This study analyses the possible impact of this measure on businesses active in intra-Community trade.
|Study on the possible impact of measures envisaged for fighting VAT fraud (More detailed information)||
In its Communication on tax fraud ( COM/2006/254) the Commission suggested a series of measures to improve the exchange of information. One of these measures was the collection and exchange of more detailed information on intra-Community transactions. In the discussions in the anti tax fraud strategy expert group, some Member States indicated that they were in favour of a more detailed information on intra-Community transactions. This measure was listed by the Council in its conclusions of 5 June 2007 as one of the measures for further discussion. This study analyses the possible impacts of this measure on businesses active in intra-Community trade.
|Study in respect of introducing an optional reverse charge mechanism||
One of the debated solutions to combat certain types of VAT fraud is the introduction of a general reverse charge mechanism in the VAT system. The European Commission therefore decided to explore the impact of the introduction in certain Member States of such a system.
|VAT on Labour Intensive Services||
A reduced VAT rate can be applied to certain specified labour-intensive services, but only for an experimental period so as to test its impact, in terms of job creation and in combating the 'black' economy.
|Reduced VAT applied to goods and services in the EU Member States||
The study examines the theoretical and empirical merits of four different arguments for reduced VAT rates. Two based on efficiency grounds: Can reduced VAT increase efficiency by increasing productivity or by reducing structural unemployment? Another two based on equity grounds: Can reduced VAT enhance equity by improving the income distribution or by making particular products more accessible to the entire population?
|Study on reduced VAT applied to goods and services in the Member States of the EU||
The study examines the impact of reduced VAT rates and of derogations, not only for locally supplied services, but also more globally. The effects on income distribution, the informal economy and compliance costs for businesses were also taken into consideration. Read more.