Taxation in the EU

1
Taxation in the EU
2
Responsibility for direct taxation

• Within the EU, governments retain sole
  responsibility for levels of direct taxation
  i.e. tax on personal incomes and company
  profits.

3
EU goals and tax rules

• EU goals job creation, the EUs competitiveness,
  the single market and free movement of capital. 
  
• Tax rules have to be consistent with these goals

4
The role of the Commission

• The European Commission promotes co-ordination
  and coherence, particularly where more than one
  member state is involved in taxation issues, to
  avoid double taxation, discrimination or
  excessive costs from having to comply with the
  rules of more than one tax system, or abuse of
  tax position in order to avoid or evade tax.

5
The role of ECJ

• Where the single market, free movement of capital
  or individuals rights are being undermined by
  tax rules, the European Court of Justice is the
  ultimate arbiter of what is right

6
VAT

• VAT rates are an exception as they are
  fundamental to a properly functioning single
  market. Nevertheless, there is considerable
  leeway for national differences in VAT rates.
• There is a minimum rate of 15 for VAT on most
  goods and services

7
Excise taxes

• Changes and differences in excise tax on petrol,
  drinks or cigarettes can very easily distort
  competition, so these are also subject to some
  common rules.
• Cultural differences are respected, for example
  in the approach to taxing beer and wine.

8
Company tax

• In the area of company tax, the EU has two goals
  preventing harmful tax competition between member
  states and supporting the principle of free
  movement of capital.

9
Pension rights

• The European Commission takes action to ensure
  that EU citizens are not deterred from working in
  other EU countries by problems with transfer and
  taxation of pension rights.

10
Savings

• EU citizens can place their savings where they
  think they will get the best return. However, tax
  remains due in their country of residence

11
Find English terms for the following

• Jedinstveno tržište
• Konkurentnost
• Sloboda kretanja kapitala
• Zaštita nacionalne autonomije
• Utajiti porez
• Oporezivi prihod u više od jedne zemlje clanice
  EU

12
The role of indirect taxes

• Read the paragraph and make notes!
• Answer the following questions
• When is a higher VAT rate allowed?
• What are lower rates reserved for?
• What are excise taxes subject to?
• How can tax differences across the EU be
  exploited?
• Why is keeping up with advances in technology
  important?

13
What do following phrases mean?

• Necesseties of daily life
• To disrupt the single market
• To distort competition
• To accommodate special national circumstances
• A system built up piecemeal
• Pay-per-view television from cyberspace

14
An equitable approach to savings and pension

• Read the paragraph and explain the meaning of the
  word equitable in the title!