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Taxation and Customs Union

VAT - Possible introduction of a mechanism for eliminating double taxation in individual cases

The European Commission has launched an online consultation to ascertain the views of the public and businesses on the possible introduction of a mechanism for eliminating double taxation in individual cases.

The consultation is based on a consultation document whose aim is to describe the problems identified by the Commission and to propose possible solutions.

In order to improve the current situation, the document examines two possible approaches:

  • Removal of the obligation to pay the amount of VAT demanded a second time until the dispute giving rise to the double taxation has been resolved between the Member States concerned.
  • Elimination of the double taxation itself by introducing a procedure for mutual agreement between the tax administrations of the various Member States concerned; if this procedure failed, the matter could be resolved by arbitration.

The Commission hopes to obtain a set of reactions and contributions concerning the problems encountered by taxpayers, the proposed framework and related questions. The contributions made by all the interested parties will enable the Commission to decide whether it is appropriate to present a legislative proposal on the matter.

The consultation document will be of particular interest to taxable persons who have already been confronted with VAT double taxation problems, businesses whose customers have been confronted with double taxation situations, and consumers who have themselves been charged VAT twice for the same product or service.

The consultation document should not be interpreted as a commitment by the Commission to any official initiative in this area.

Interested parties are invited to submit their comments by 31 May 2007 at the latest.

Comments may be sent by letter, fax or electronic mail for the attention of Ms Maryse Volvert or Mr Jean-Claude Pilat.


European Commission

Directorate-General for Taxation and Customs Union

VAT and other turnover taxes

Office MO 59 5/77

B-1049 Brussels


Fax: + 32-2-299-36-48

Electronic mail:

If, for any reason, you wish your comments to remain confidential, please state this. Otherwise we will assume that you have no objection to their subsequent publication on our website.