eLearning Course on the European value added tax

25.09.2012

Recently it became known that the European Commission developed the eLearning Course on the value added tax.

In order to promote the program Fiscalis 2013 firstly for enlightenment of officials interested in the value added tax valid on the territory of the European Union the eLearning Course discloses the sense of the European Directive 2006/112/EC in details.

The course takes 6 hours and comprises 14 parts:

1. Introduction;
2. Context;
3. Legal framework;
4. Scope;
5. Territory;
6. Taxable persons;
7. Transactions;
8. Place of taxable transactions;
9. Chargeable event and taxable amount;
10. Rates;
11. Exemptions;
12. Right to deduct;
13. Obligations;
14. Final assessment.

On the basis: http://ec.europa.eu/taxation_customs/common/elearning/vat/index_en.htm

Expert’s opinion

Value added tax in its current form as we know it nowadays was introduced by Napoleon. The United Europe “that can be crossed by anyone from edge to edge with the one passport without crossing the border” is also his idea which was realized by him during expanding of the French Empire. The United Kingdom and Russia made a lot to limit the French Empire into the size of France. Today the heirs of Napoleon’s ideas faced as he himself with the representatives of the Russian Empire.

And it should be noticed that in the post-soviet area approximately from 1997 (these years practically everywhere in the former republics the tax laws on value added tax were adopted) and till nowadays a huge experience on value added tax refund was accumulated.

Exactly, a huge criminal experience on VAT refund for companies was accumulated that in fact didn’t produce the so called “additional value” and had no connection with VAT payment for goods.

When specialists on such VAT refund came to the European area – there was no limit to their excitement and joy!

VAT was refunded automatically!!! Without cameral, planned, special, outplanned and other types of control. Without submitting of registers of invoices and tax returns (depending on a country), books of sales and other accounting registers in paper or electronic form. And the most important: without bribes to tax officials for refund!!!

The enormous legislative construction (414 articles and 12 annexes) really aontain the mechanisms of counteractions to fraudsters.

It seems that in order to find these mechanisms and learn how to use them correctly this course was developed. Though in my opinion – it is more optional to simplify the language of the legislative acts and simplify all the tax system.

The simpler and more understandable – the less options for fraud and criminal.

The offshore jurisdictions have perfectly implemented this principle long time ago.

The simplicity of business conducting with the substantial tax easing attracted and continue to attract to different offshore and low-tax jurisdictions the attention of businessmen all over the world.

Yaroslav Lomakin ( Managing partner Company Honest & Bright)