The crucial role of information in the context of VAT taxation
In the context of (EU) VAT, Nellen’s dissertation illustrates that information procurement by the entrepreneur can be a challenging affair.
On March 30, 2017, Frank Nellen will defend his dissertation titled “Information asymmetries in EU VAT” in the auditorium of Maastricht University. His research focuses on the information position of the entrepreneur in the context of (EU) VAT taxation.
In order to apply VAT in line with the conditions of the legal system, an entrepreneur generally requires various items of information from his transaction counterparts (i.e. suppliers and customers). For example, an entrepreneur who carries out cross-border advisory services needs to establish whether his customer is a VAT taxable person, what the place of establishment of that customer is, etcetera. On occasion, the required information is of a detailed or even confidential nature. In the mentioned example, the entrepreneur may have to ask the customer where the latter’s central management decisions take place, or how the rendered advisory services are effectively used.
In the context of (EU) VAT, Nellen’s dissertation illustrates that information procurement by the entrepreneur can be a challenging affair. Beyond such practical aspects, the author also carries out a legal analysis of situations in which the entrepreneur ultimately proves unable to obtain the required information from his transaction counterparts (i.e. situations involving ‘information asymmetries’). In particular, he addresses the question to what extent the entrepreneur should be confronted with VAT assessments and sanctions (e.g. fines) in case he is subject to an information asymmetry.
Nellen maps out various elements of (statutory) EU VAT law which imply the risk of information asymmetries for the entrepreneur. Additionally, he addresses the legality of VAT assessments and sanctions in situations involving information asymmetries. With regard to these aspects, the dissertation is relevant for entrepreneurs, VAT practitioners, scholars, and judicial experts alike. Since Nellen also suggests various (legislative) changes in order to facilitate the information position of entrepreneurs, his research results are also usable for legislators and policymakers.
This blog is published on Law Blogs Maastricht
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F.J.G. NellenMore articles from F.J.G. NellenFrank Nellen is an Associate Professor (VAT and customs law) at Maastricht University. He is also a director with Baker Tilly Netherlands NV, specializing in knowledge management and tax advisory in international settings. From 2008 until 2016, he worked as a tax advisor with KPMG Meijburg & Co, Eindhoven, the Netherlands. He is a member of the Dutch Association of Tax Advisors.
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