Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Halting the Horses: EU Policy on the VAT Carousel Fraud in the EU Emissions Trading System

Halting the Horses: EU Policy on the VAT Carousel Fraud in the EU Emissions Trading System The European Union (EU) Emission Trading System (ETS) has been a major tool of the EU climate policy. Despite its significance, the EU ETS faces serious challenges regarding its function. One of the major issues that encumber its contribution in EU climate policy is value added tax (VAT) carousel fraud within it. This paper examined the ways this type of swindle is conducted and its economic impact. It analyses the parameters that facilitate it and evaluates the responses of the EU and its Member States and mainly the introduction of the reverse charge mechanism. It finally highlights the need to implement some changes to the EU ETS, the VAT provisions, and the way the national tax authorities and the EU coordinate. Finally, it suggests the introduction of a real-time VAT collection mechanism that can be an effective and feasible solution to the problem in general. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png EC Tax Review Kluwer Law International

Halting the Horses: EU Policy on the VAT Carousel Fraud in the EU Emissions Trading System

EC Tax Review , Volume 21 (1) – Jan 1, 2012

Loading next page...
 
/lp/kluwer-law-international/halting-the-horses-eu-policy-on-the-vat-carousel-fraud-in-the-eu-07QCpjlEQK
Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
0928-2750
Publisher site
See Article on Publisher Site

Abstract

The European Union (EU) Emission Trading System (ETS) has been a major tool of the EU climate policy. Despite its significance, the EU ETS faces serious challenges regarding its function. One of the major issues that encumber its contribution in EU climate policy is value added tax (VAT) carousel fraud within it. This paper examined the ways this type of swindle is conducted and its economic impact. It analyses the parameters that facilitate it and evaluates the responses of the EU and its Member States and mainly the introduction of the reverse charge mechanism. It finally highlights the need to implement some changes to the EU ETS, the VAT provisions, and the way the national tax authorities and the EU coordinate. Finally, it suggests the introduction of a real-time VAT collection mechanism that can be an effective and feasible solution to the problem in general.

Journal

EC Tax ReviewKluwer Law International

Published: Jan 1, 2012

There are no references for this article.