CJEU - Recent Developments in Value Added Tax 2024

1. Introduction

This author is an American commentator whose expertise regarding consumption taxes lies principally with issues arising under the US subnational state retail sales tax (US RST). Providing a US RST perspective on some of the issues raised by the cases discussed in Sebastian Pfeiffer’s illuminating contribution was therefore thought to be appropriate. Specifically, this author thought it would be useful to focus on the treatment of transactions involving intra-group supplies which gives rise to controversial questions under the US RST just as it does under the EU VAT.

2. “Lost in Translation” Issues

As in this author’s commentary providing a US RST perspective on the treatment of taxable persons and related issues arising under the EU VAT in previous WU CJEU VAT conferences, it may be useful at the outset to identify potential “lost in translation” issues in connection with a comparative discussion of the two levies. The EU VAT is a consumption tax based on a staged collection process and identifies the “taxable person” as someone who is responsible for collecting it at various stages of the economic process but whose economic burden is ultimately borne by the final cons...