Projects

This trial, which will run until 1 October 2018, allows the taxpayer, in cases where VAT is claimed on the same transaction by two different national tax agencies, to request the corresponding member States to enter into a dialogue with the aim of resolving the double taxation problem by mutual agreement

The aim is that, through this dialogue, the member States involved can exchange their viewpoints on the facts of the transaction or regulatory interpretations, without there being an obligation to reach an agreement, nor enter into arbitration proceedings in the event the situation is not resolved.

Currently, the following member States are taking part in this project: Belgium, Denmark, Ireland, Estonia, Spain, France, Latvia, Lithuania, Netherlands, Finland, Sweden and the United Kingdom.

Taxpayers may share their experiences and send suggestions to: TAXUD-EU-VAT-FORUM@ec.europa.eu

These are situations where VAT on a transaction is paid by "error" in a particular Member State and then claimed by a different Member State.

For taxpayers and tax administrations, the correct processing of a transaction depends both on a correct assessment of the facts and circumstances related to the transaction and on an equally correct interpretation of tax legislation.

The parties to a transaction may agree that VAT should be paid in a particular Member State, or that such taxation should even be levied at a subsequent tax inspection in that Member State. If a different Member State subsequently considers that the transaction has taken place within its territory and that the VAT has to be paid there, that particular State' s VAT claim may lead to double taxation.

No. This is a voluntary cooperative initiative and is not a substitute for other legal procedures, agreements (such as VAT double taxation treaties) or already existing channels of communication between Member States.

Taxpayers should send their applications to the following address:

Subdirección General de Información y Asistencia Tributaria del Departamento de

Gestión de la Agencia Estatal de Administración Tributaria.

c/ Infanta Mercedes, 37

28071 Madrid

Tel. (34) 91 583 89 76

FAX (34) 91 5838948

Apartado de Correos 993

28080 Madrid

consultas@aeat.es

Applicants should provide a clear and detailed description of their case and their opinion and/or doubts regarding the VAT regime applied. Please state the reference code: «CBD».

Taxpayers filing a request for consultation regarding a case of double taxation shall accept that the details provided may be shared with the tax authorities of the relevant member state or states.

Based on this request, the corresponding member states shall carry out the pertinent consultations.

The aim of this initiative is not to endorse an agreement where Member States renounce their legitimate fiscal rights. There is no obligation for the Member States involved to reach an agreement, nor to initiate arbitral proceedings if the situation remains unresolved.

Each Member State, depending on its own national legislation, will have to decide on the time limits for unjustified VAT return procedures. It will also be the Member States who shall decide on procedural retroactivity questions and potential issues of neutrality.

In the event that the dispute over the place of taxation continues, as well as the taxpayer not asking to begin discussions, judicial court proceedings will always be available where the taxpayer can prosecute the Member State they consider is breaching the law.

However, even in cases where discussions do not resolve the dispute, they can still be useful in clarifying the situation and putting the case into perspective before the courts. Such discussions and dialogue will help the taxpayer understand the position of the Member States involved in the transaction in question.

Under no circumstances shall the dialogue interfere with Member States' claims procedures.