Indirect taxation in an integrated Europe

Bernd Genser, Andreas Haufler, Peter Birch Sørensen

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Abstract

The paper discusses the main arguments for destination- versus origin-based commodity taxation in the European Community's Internal Market. Destination-based solutions distort commodity trade in the Community because cross-border purchases by final consumers can only be taxed in the origin country. On the other hand, an origin-based general consumption tax is neutral in a European context and it can be combined with destination-based taxation in third countries in a non-distortionary way. Furthermore, it is shown that the introduction of capital mobility does not affect the neutrality of an origin-based consumption tax. Finally, the paper addresses the administrative and political implications of a switch to the origin principle in the European Community
OriginalsprogEngelsk
TidsskriftJournal of Economic Integration
Vol/bind10
Udgave nummer2
Sider (fra-til)178-205
ISSN1225-651X
StatusUdgivet - 1995

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