<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

A comparative analysis of VAT grouping schemes from a Nordic perspective—aspects of tax avoidance and fiscal competition

Nordic Tax Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Value-added tax (VAT) grouping schemes, whereby several legally independent entities are treated as a single taxable person for VAT purposes, are well known,...

A comparative analysis of VAT grouping schemes from a Nordic perspective—aspects of tax avoidance and fiscal competition

Article Category: Article

Published Online: May 26, 2017

Page range: 1 - 25

Received: Feb 28, 2017

Accepted: Mar 17, 2017

DOI: https://doi.org/10.1515/ntaxj-2017-0001

Keywords
VAT group, VAT grouping, Nordic countries, Tax avoidance, VAT abuse, Fiscal competition

© 2017 K. K. Egholm Elgaard

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

A comparative analysis of VAT grouping schemes from a Nordic perspective—aspects of tax avoidance and fiscal competition

Article Category: Article

Published Online: May 26, 2017

Page range: 1 - 25

Received: Feb 28, 2017

Accepted: Mar 17, 2017

DOI: https://doi.org/10.1515/ntaxj-2017-0001

KeywordsVAT group, VAT grouping, Nordic countries, Tax avoidance, VAT abuse, Fiscal competition

© 2017 K. K. Egholm Elgaard

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
VAT group, VAT grouping, Nordic countries, Tax avoidance, VAT abuse, Fiscal competition