The right to deduct input VAT in Austria, Germany and Sweden

The purpose of this project is to analyse the right of deduction of input value-added tax (VAT) in Austria, Germany and Sweden. The purpose includes developing a methodical framework for how to carry out comparative studies in an EU harmonized field of law, such as VAT law.

The following research questions will be addressed and answered:
•    Which methodical framework is most suitable for carrying out comparative studies within the field of EU VAT Law?
•    What can be learned from the EU VAT Directive  and the case law of the CJEU on deductions on input VAT?
•    Which differences can be identified between the domestic VAT acts in Austria, Germany and Sweden compared to each other and compared to the EU VAT Directive?
•    How can the differences be explained, e.g. allowed exceptions from the VAT Directive or different interpretation of the EU VAT Directive?
•    How do differences in the right to deduct input VAT in different jurisdictions influence the EU VAT system, such as it is intended to work?
•    Which of the identified differences should be kept, and which of them should be abolished?

The two last research questions require benchmarks in order to be answered. There is a broad common understanding both in the EU, and the OECD, on which components a VAT system should comprise in order to be a “good” VAT system. In its most recent guideline, the OECD identifies the following characteristics for a well-functioning VAT system.