A View on the VAT Split Procedure: the Estimated Effects of the Proposal for Regulation
A View on the VAT Split Procedure: the Estimated Effects of the Proposal for Regulation

Author(s): Mihaela Tofan
Subject(s): Law, Constitution, Jurisprudence
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: VAT gap; split procedure; regulation;
Summary/Abstract: In the context of the recent global financial crisis, the methods to efficiently collect the revenues to the public budget became a constant concern for every government. This is a major concern within the EU too, the member states looking for appropriate regulation to insure the fiscal sustainability. VAT split procedure is one of the proposed means of action and it was anticipated in EU Commission Green Paper on VAT in 2010. The main objective of implementing this new procedure to collect VAT is to reduce and, if possible, to eliminate the VAT gap. In theory, the procedure is estimated to reach its best results in more than 15 years of activity but there are already delays in implementingit. Italy was the first state in the EU to opt for this new procedure of collecting VAT. Romania, Poland and UK are about to follow this trend, but major discussions are ongoing both among academics, practitioners of taxation and politicians. Romanian proposal of regulation for VAT split procedure is strongly criticized, but the goals of the prevision and the EU regulation development trend will impose, eventually, this collection mechanism for all the member states.

• Details
• Contents