Indirect taxation on 3D printing – A new challenge for the European Union

IFA 2015

 by Andreia Barbosa, PhD candidate at UMINHO

3D printing (or rapid prototyping) is a form of additive manufacturing technology through which a three-dimensional model (height, depth and width, maxime, embossed) is created by successive layers of material. Think of the production of a computer mouse. The traditional production of this property implies that, in the first instance, the respective components are separately produced and subsequently assembled, giving rise to the mouse. Differently, through 3D printing the mouse for the computer will be printed as a whole, layer by layer – making the assembly process obsolete – and with the possibility of the product being customized, according to the model that has been developed.

That said, it is easy to conclude that in the case of models for 3D printing there is no corporeality to which we refer, so that, then, there will be no merchandise, which will only assume this quality when it is actually printed. That is to say, the 3D printing model, which is the subject of an international transaction, will not be regarded as a ‘good’ for customs purposes. Consequently, as customs duties constitute charges imposed on goods on the ground that they have crossed a customs line, no customs duties may be levied by the transmission of the model to be printed (which will be carried out electronically).
Continue reading “Indirect taxation on 3D printing – A new challenge for the European Union”

Advertisements

The need of tax harmonization within the wealth taxation in the European Union

euro-76019_1920

by Hugo Flores da Silva, Assistant Professor at Law School of UMinho


1. Introduction and wealth taxation characterization

Though widely used in the European Union, the wealth taxes account for a relatively small part of the EU Member States’ tax revenue, when compared with the main sources of revenue[i]. At the same time, the political debate and the scientific research developed in the field of wealth taxation is very incipient, when compared to another taxation bases[ii]. Not even the fact that this kind of taxation constitutes one of the oldest ways employed by the states to obtain revenue was able to counter the identified trend[iii].

However, in the current time of fiscal consolidation and macroeconomic adjustment, taxation of wealth is gaining momentum. The lack of alternatives capable of generating an increase in tax revenue within the income and consumption taxation[iv], the growing interest in the fairness and redistributions aspects of the tax system[v] and the need to adjust the tax system to make it more growth friendly[vi], can be pointed out as the main reasons for the recent academic and political debate on wealth taxation.

When we talk about wealth taxation we’re referring to a very complex reality, capable of reunite a very large group of different taxes[vii]. Although there are many types of wealth taxes, and with very different characterization between them, we consider that they can be grouped into two major categories[viii]: taxes on wealth transfers; and taxes on wealth itself. Inside these two main categories it is possible to identify a wide variety of distinct taxes.

The taxes on wealth transfers usually assume the following characterization[ix]: (i) taxes on onerous transfers – as the onerous movable transfers are subject to VAT, in this subcategory we include the taxes levied on onerous immovable transfers[x]; (ii) and taxes on gratuitous transfers – in this subcategory we include the inheritance and gift taxation[xi]. The taxes on wealth itself can be classified as follows[xii]: (i) taxes levied on the holding or ownership of specific assets – usually immovable property[xiii]; and (ii) taxes levied on the taxpayer’s aggregate net-wealth[xiv].
Continue reading “The need of tax harmonization within the wealth taxation in the European Union”