Improving the VAT treatment of exempt immovable property in the European Union

Journal article

The treatment of immovable property is one of the most difficult issues under the VATs in the EU. Ideally, rents and rental values should be taxed just like other consumer goods and services, but doing so would present formidable practical difficulties. Under a second-best approach, the value of newly created property is taxed as a proxy for the exempt flow of building services. This implies, however, that future increases (and decreases) in the value of the exempt property are left out of th...

Expand abstract

Authors: Cnossen, S

• Publication date: 2010-11-01