Common market principle

The common market principle is a principle of sales taxation (VAT) for cross-border services. Such services should be treated like domestic supplies and services. Accordingly, the VAT paid should be deductible as input tax at the next higher level.
The balance between the countries is problematic, as the states have different sales tax rates on the one hand and export countries are favored on the other because they have higher sales tax revenues. A clearing system should ensure the financial equalization of the exporting countries to the importing countries.

Die ursprünglichen Vorschläge der EG-Kommission gingen dahin grenzüberschreitende Leistungen nach dem Gemeinsamen-Markt-Prinzip zu besteuern. Dies scheiterte jedoch an der Durchführung des Clearing-Systems, da sich die Mitgliedstaaten weigerten, ihre Steuersouveränität aufzugeben. Für die Übergangszeit gilt ein Mischsystem von Destination principle and Country of origin principle.

Was the explanation to "Common market principle"Helpful? Rate now:

Weitere Erklärungen zu Steuern