Indirect Taxation of Financial Services

19 Pages Posted: 25 Oct 2017

See all articles by Vidar Christiansen

Vidar Christiansen

University of Oslo - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: October 16, 2017

Abstract

An important question is whether VAT exemption of financial services is a desirable property or whether it is justified only due to practical and administrative necessity. This paper singles out a number of financial services for discussion of this issue in a context allowing for other taxes and other preexisting distortions. It discusses taxation of intermediation that facilitates savings and borrowing, payment services and currency exchange. It also elaborates on the distortionary effects of taxing intermediate goods due to VAT exemption with focus on exports and consumer prices.

Keywords: financial services, indirect taxation, value added tax, VAT exemptions

JEL Classification: H200, H210, H220

Suggested Citation

Christiansen, Vidar, Indirect Taxation of Financial Services (October 16, 2017). CESifo Working Paper Series No. 6675, Available at SSRN: https://ssrn.com/abstract=3058577 or http://dx.doi.org/10.2139/ssrn.3058577

Vidar Christiansen (Contact Author)

University of Oslo - Department of Economics ( email )

P.O. Box 1095 Blindern
N-0317 Oslo
Norway
011-47-22-855121 (Phone)
011-47-22-855035 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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