7.1.1 General

This study deals with the deduction of input VAT used for taxable supplies in the Netherlands. When dealing with any VAT issue one cannot ignore European law. In the preceding chapters, I discussed at length the European law aspects of the various VAT issues. When discussing national legislation and jurisprudence, it is much less obvious to look to other EU member states. That is a shame, because VAT is practised in 27 member states based on the same European legislation. In 27 member states, tax officers, advisers, in-company tax managers and scientists are dealing professionally with VAT. Only to a very limited extent are experiences shared in such a way that professionals learn from each other. Sometimes European case law enables us to catch a glimpse of how VAT is practised in other member states. A useful role is also played by magazines such as the International VAT monitor.

In this chapter I want to show how three European countries deal with the subject of my study discussed in the preceding chapters, providing the opportunity to make a comparison. On the basis of this comparison, question marks can be placed or conclusions can be drawn about the correctness of the choices made in the Netherlands.

I have chosen not to discuss the full legislation and jurisprudence related to the subject of the study in the countries concerned. This might have forced me to do a study which in volume would be comparable to the study I did for the Netherlands. In order to avoid this, and taking into account the practicability of this comparative study, I decided to opt for a more limited approach. In chapter 5, I discussed how, under the legislation which is in force as of 1 January 2007 and under the Supreme Court’s jurisprudence, a number of specific cases were dealt with in the Netherlands. In the present chapter, I will limit myself to the discussion of a number of these cases and show how in these cases the deduction of input VAT is dealt in the United Kingdom, Germany and France. In all the cases I will first summarize the Dutch position. Furthermore, I will refer to existing legislation and jurisprudence where possible, without pretending to be complete, and try to resist the temptation of extensive considerations.