Tax calculation account method as a potential method of taxing financial services
DOI:
https://doi.org/10.7251/ACE1625111SKeywords:
financial services, tax calculation account, VATAbstract
Financial services represent one of the most problematic areas when it comes to their taxation by value added tax. These problems stem from their nature. Although these services are generally exempted from taxation, in theory and practice there are some suggestions on how they could be included in the VAT base. The main purpose of this paper is to present a proposal that might be acceptable from the point of taxation of financial services.
References
Bodin, J., Ebrill, L. P., Keen, M., & Summers, V. (2001). The Modern VAT. Washington, D.C.: International Monetary Fund.
Gendron, P.P. (2008). VAT Treatment of Financial Services: Assessment and Policy Proposal for Developing Countries. Bulletin for international taxation, 494-507.
Henkow, O. (2008). Financial activities in European VAT: A theoretical and legal research of the European VAT system and the actual and preferred treatment of financial activities. Alphen aan den Rijn: Kluwer Law International.
Merril, P. R. (2011). VAT Treatment of the Financial Sector. Tax Analysts, 163-185.
Mirrlees, J. A., Adam, S., Besley, T., Blundell, R., Bond, S., Chote, R., … Poterba, J. (2011). Tax by design: Te Mirrlees review. Oxford: Oxford University Press.
Poddar, S., & English, M. (1997). Taxation of fnancial services under a value-added tax:applying the cash-flow method. National Tax Journal, 50(1), 89-112.
Poddar, S. (2003). Consumption taxes: The role of the value-added tax. In P. Honohan (Ed.), Taxation of Financial Intermediation: Theory and Practice for Emerging Economies, Washington, D.C.: International Monetary Fund. pp. 345-380.
European Commission. (1999). The TCA System-a detailed description, преузето са: http://ec.europa.eu/taxation_customs/resources/documents/tca_system_introduction.pdf
European Commission. (1996). Value Added Tax: A Study of Methods of Taxing Financial and Insurance services, преузето са: http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/key_documents/reports_published/methods_taxing.pdf
