Some Remarks on the Possibility of VAT Group’s Introduction Into the Bulgarian Tax Legislation

Stoycho Dulevski

Some Remarks on the Possibility of VAT Group’s Introduction Into the Bulgarian Tax Legislation

Publication date: 12.2021

Financial Law Review, 2021, Issue 24 (4)/ 2021, pp. 69 - 81

https://doi.org/10.4467/22996834FLR.21.033.15400

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Some Remarks on the Possibility of VAT Group’s Introduction Into the Bulgarian Tax Legislation

Abstract

The provision of Art. 11 of the Council Directive 2006/112 of 28 November 2006 on the common system of value added tax (VAT Directive) introduces the VAT group’s concept. It should be noted that it grants a right and not an obligation on a Member State (MS) to transpose this text into its domestic law on appropriate way. So far, Bulgaria has not such provision in its national legislation.
The current study is dived into three main parts. The first examines some relevant case law of the Court of Justice of the European Union (CJEU) in this matter that will be followed by author’s comment. The second emphasizes certain VAT group’s specifics through the prism of the domestic legislation of some MSs. The third refers to its possible future transposition into the Bulgarian tax law. Taking into account both the European and the national practice on this issue, the author will try to design an exemplary VAT group’s provision from Bulgarian perspective.

Keywords

VAT, Bulgaria, Member States, Directive 2006/112, VAT group, taxable person

References

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Amand, C., Cross-Border Entities and EU VAT: A Contradictory Concept?, International VAT Monitor, vol. 21, no. 1, 2010

Eskildsen, B. C., VAT Grouping versus Freedom of Establishment, EC Tax Review, no. 3, 2011

Llopis, E., Skandia America and VAT Grouping in Spain, Intertax, Vol. 49 (1), 2021.

Papis-Almansa M.: What Has the Trinity Doctrine Got to Do with VAT: Some Reflections on the CJEU Judgement in C-77/19 Kaplan International Colleges UK (Part I). Available at: http://kluwertaxblog.com/2021/03/10/what-has-the-trinity-doctrine-got-to-do-with-vat-some-reflections-on-the-cjeu-judgment-in-c-77-19-kaplan-international-colleges-uk-part-i/, accessed: 12th April 2021

Pfeiffer, S., VAT Grouping from a European Perspective, IBFD: Amsterdam, 2015

Swinkels, J., The Phenomenon of VAT Groups under EU Law and Their VAT-Saving Aspects, International VAT Monitor, vol. 21, no. 1, 2010

Vyncke, K., VAT Grouping in the European Union: Purposes, Possibilites and Limitations, International VAT Monitor, vol. 18, np. 4, 2007

Vyncke, K., EU VAT Grouping from a Comparative Tax Law Perspective, EC Tax Review, no. 6, 2009

Zuidgeest, R., Cross-Border VAT Grouping, International VAT Monitor, vol. 18, no. 2, 2010

Legal Acts

Council Directive 2006/112 of 28th November 2006 on the common system of value added tax, OJ L 347 as amended

Закон за данък върху добавената стойност [Zakon za dan"k v"rhu dobavenata stojnost, Value Added Tax Act], State Gazette no. 63/4.08.2006, as amended

Court Rulings

European Court of Justice, С-162/07 Ampliscientifica

European Court of Justice, С-85/11 Commission v Ireland

European Court of Justice, C-86/11 Commission v United Kingdom

European Court of Justice, С-7/13 Skandia

European Court of Justice, С-340/15 Nigl

European Court of Justice, C-77/19 Kaplan International Colleges UK Ltd

European Court of Justice, C-812/19 Danske Bank

Other Official Documents

European Commission, Working Paper No 845. Available at: https://circabc.europa.eu/sd/a/e75d22a9-ff84-485a-acc7-d52ada466575/845%20-%20Case%20C-7-13%20-%20Skandia%20America.pdf, accessed: 12th April 2021.

European Commission, Working Paper No 879, 2015. Available at: https://circabc.europa.eu/sd/a/b70c5f81-8ce1-4a87-9702-6691f83421d2/879%20-%20Skandia%20America%20case%20-%20Follow-up%20VEG%20-%20Questions-EN.pdf, accessed: 12th April 2021

Internet Resources

Danske Bank A/S (C-812/19) – Skandia principles reinforced, but questions raised over ‘whole legal entity’ VAT grouping rules in the EU Available at: https://taxscape.deloitte.com/article/danske-bank-(c-812-19)---cjeu-judgment.aspx, accessed: 12th April 2021

Information

Information: Financial Law Review, 2021, Issue 24 (4)/ 2021, pp. 69 - 81

DOI: https://doi.org/10.4467/22996834FLR.21.033.15400

Article type: Original article

Authors

Stoycho Dulevski

Public Legal Studies Department, Faculty of Law, University of National and World Economy, Bulgaria

Published at: 12.2021

Article status: Open

Licence: CC BY-NC-ND

Percentage share of authors:

Stoycho Dulevski (Author) - 100%

Classification number:

JEL Classification System:

Tax Law (K34)

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Publication languages:

English

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