VAT and financial investments

Richard Krever

doi:10.1007/978-981-10-3465-7_12

VAT and financial investments

Research output: Chapter in Book/Conference paper › Chapter › peer-review

Abstract

The issues raised by VAT and financial investments may be the most challenging of all VAT and financial supplies to resolve. In a model VAT, there would be full recovery of all VAT associated with savings and investment. Three problems make it difficult to achieve this aim in respect of individuals' investments. The first is that of expenses related to the acquisition of investments that may also be characterized as personal consumption expenses. The second is the fact that most savers are not registered for VAT purposes and it would be impossible to bring them all into the VAT net to refund input VAT related to savings. The third is the political implications of increasing the regressivity of the VAT by returning input VAT to savers. This chapter explores options to address these issues. It then considers the problem of VAT and company investments such as the VAT consequences when operating companies are owned by holding companies. Legislative options to address this issue are reviewed. © Springer Nature Singapore Pte Ltd. 2017. All rights reserved.

Original language	English
Title of host publication	VAT and Financial Services
Subtitle of host publication	Comparative Law and Economic Perspectives
Editors	Robert F van Brederode, Richard Krever
Place of Publication	Singapore
Publisher	Springer Publishing
Chapter	12
Pages	189-197
Number of pages	9
ISBN (Electronic)	9789811034657
ISBN (Print)	9789811034633
DOIs	https://doi.org/10.1007/978-981-10-3465-7_12
Publication status	Published - 6 Mar 2017
Externally published	Yes

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10.1007/978-981-10-3465-7_12

Cite this

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VAT and financial investments

Abstract

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