Welfare Effects of Value-Added Tax Harmonization in Europe

The book evaluates value-added tax reform proposals in the European Union using a computable general equilibrium framework, focusing on welfare implications. It examines the debate sparked by the 1985 "White Paper" regarding tax barriers to free trade, particularly the shift from the destination to the origin principle for VAT. The transitional system, which maintains the destination principle while altering tax procedures, is analyzed in the context of the ECOFIN Council's decisions and the potential for future reforms by 1996.