Keywords
Summary

Keywords

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Tax provisions ° Harmonization of laws ° Turnover tax ° Common system of value added tax ° Prohibition of collecting other national taxes having the character of turnover taxes ° Purpose ° Concept of "turnover taxes" ° Scope ° Contributions like the Italian "contributo integrativo" paid to the Lawyers' National Provident Fund ° Excluded

(Council Directive 77/388, Art. 33)

Summary

Whilst Article 33 of the Sixth VAT Directive (77/388/EEC), with the purpose of preventing the introduction of taxes, duties or charges which, through being levied on the movement of goods and services in a way comparable to VAT, would jeopardize the functioning of the common system of VAT, prohibits the maintenance or introduction of taxes which have the essential characteristics of VAT, it does not preclude the maintenance or introduction of other kinds of taxes, duties or charges which do not have those characteristics.

Consequently, Article 33 does not preclude the introduction or maintenance of a contribution like the supplementary contribution ("contributo integrativo") payable in Italy by advocates and procuratori legali to the Lawyers' National Provident Fund and calculated in principle by applying a surcharge to the earnings making up their turnover. The supplementary contribution is not a general levy; it is not always proportional to the fees payable by clients for professional services rendered and it is payable at one stage only, with no provision for deduction.