VAT Exemptions: Consequences and Design Alternatives

This book is the only in-depth analysis of VAT to focus on exemptions as a
whole. Ten insightful chapters – by economists, lawyers, legal academics, and
government tax advisors from a wide variety of jurisdictions – grapple with
the essential questions: Are VAT exemptions desirable? Are they avoidable? Are
alternative legal designs possible? Are such alternatives necessary? What new
problems do such designs give rise to? The authors emphasize in particular the
design alternatives to exemptions that characterize ‘modern’ VAT and the newly
proposed ‘post-modern’ VAT, both those that are already in operation in some
countries and others that have not yet been attempted anywhere in the world.
Among the core issues discussed are the following:

• ‘out-of-scope’ supplies and suppliers;

• merit or concessional exemptions for, e.g., charities, healthcare, cultural
  activities, and education services; and

• ‘technical’ exemptions applied to, e.g., gambling, immovable property,
  financial and insurance services.

  The book’s high-calibre contributions provide a firm foundation for
  productively carrying the debate forward on traditional European-style VAT vs.
  modern VAT approaches. Most obviously, the book admirably meets the ongoing
  need of tax practitioners to assess VAT-related opportunities and pitfalls in
  order to properly safeguard the interests of their clients. It will also be
  greatly appreciated by tax counsel, financial services providers, and
  interested government officials, as well as by academics, students, and
  researchers in tax matters worldwide.