Zu, Y. (2022) 'Developing VAT Treaties: International Tax Cooperation in Times of Global Recovery.', Legal Studies, 42 (1). pp. 159-177.
Abstract
The COVID-19 pandemic highlights the pressing need to address common challenges faced by all countries and, in particular, provide special support to developing countries through international cooperation. Taxation, in particular Value Added Tax (VAT), is a key area for strengthening international cooperation because of its critical role in financing the COVID-19 crisis and supporting global recovery. This article proposes the adoption of VAT treaties based on two considerations. First, there exist, in the interplay between states’ VAT laws, over-taxation and under-taxation that can be more effectively addressed by treaties than by unilateral state actions. Second, unlike income tax treaties, the VAT treaties would distribute more benefits from cooperation to developing countries than to developed countries, leading to normatively attractive distributional consequences. The proposed model offers a new approach to taxing cross-border transactions under VAT and could form part of the coordinated responses to a sustainable post-pandemic recovery.
Item Type: | Article |
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Full text: | (AM) Accepted Manuscript Available under License - Creative Commons Attribution Non-commercial No Derivatives 4.0. Download PDF (352Kb) |
Full text: | (VoR) Version of Record Available under License - Creative Commons Attribution Non-commercial No Derivatives 4.0. Download PDF (Advance online version) (225Kb) |
Status: | Peer-reviewed |
Publisher Web site: | https://doi.org/10.1017/lst.2021.37 |
Publisher statement: | This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work. |
Date accepted: | 05 June 2021 |
Date deposited: | 30 June 2021 |
Date of first online publication: | 02 July 2021 |
Date first made open access: | 30 June 2021 |
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