Vat for economists

VAT is characterized by a set of very technical rules that are difficultto fathom for non-lawyers. However, economists are interestedin the functioning of the VAT system in their analysis of tradetransactions.This book provides a clear overview of the VAT-system in the EU.The focus lies on explaining the VAT consequences of economictransactions. The right of deduction has been referred to asthe “cornerstone” of the VAT system, through the relationship betweeninput and output one can even speak about the heart ofthe VAT system. The invoice which complies with the rules (possessionof a correct invoice) is the “ticket of admission” to the rightto deduct. The deduction system is meant to relieve the trader ofthe burden of the VAT payable or paid in the course of all his economicactivities, provided these are subject to VAT.The approach is very practical. The VAT system is explained bymeans of examples, drawings and overview diagrams.Authors have to make choices. By separating essentials fromside-issues we managed to write a book which contains the essenceof VAT.Stefan Ruysschaert works as an advisor at the FPS Financein Belgium and is Professor of VAT at Ghent University. He is a(guest) lecturer for academic scholars as well as for tax practitioners.He has written many books on VAT and numerous articles forfiscal periodicals and is a member of several committees of fiscalbooks and periodicals. He is regularly invited to speak on indirecttaxation at conferences and seminars.