CJEU - Recent Developments in Value Added Tax 2014

I. S. 30Introduction

This contribution should primarily present the US perspective on VAT and the role of the CJEU, although some of my observations will be shared by academics and practitioners from other countries.

It is often stated that the US is the only major country without VAT, but that only provides an incomplete picture of the US’ contemplation of and involvement with VAT. The Shoup mission was instrumental to the implementation of VAT in Japan and Carl Shoup, a Columbia University professor, was the only non-European member of the Neumark committee proposing a VAT for the European Union. Many US economists working for international organizations like the IMF and the World Bank actually advise countries to introduce a VAT, and perhaps I should caution against accepting such recommendation from those representing a country that does not take to heart this same advice. There is no general sales tax at the federal level in the United States, but such taxes are widely used at the sub-national level of government.

In section 2 of this chapter I will provide a short overview of the most important general sales or consumption taxes levied in the United States. Thereafter, I will explain...