Skip to main content
SpringerLink
Log in

Value added taxation and the third sector

  • Articles
  • Published:
Voluntas: International Journal of Voluntary and Nonprofit Organizations Aims and scope Submit manuscript

Abstract

During the last decades, value added taxation (VAT) has become widely used. Introducing or widening VAT may have important consequences for third sector organisations. There is no consistent, widely-accepted theory regarding the treatment of non-governmental organisations (NGOs) under VAT. International comparisons are difficult to make. The general scope of VAT, what goods and especially what services are included in the tax base, may be more important to NGOs than the direct concessions granted them. To comprehend how VAT may affect NGOs, it is necessary to understand the general mechanism and some of the technical details of VAT, such as registration thresholds and accounting requirements. There is a tendency for the legislature to widen the tax base and make VAT as general as possible. Tax administrative considerations may acquire the character of absolute principles. When VAT is introduced or widened, it may be important for NGOs to demonstrate how their tax bill has been changed as a possible unintended side-effect due to the administrative need to make VAT as comprehensive as possible.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Barrand, Peter (1991) The taxation of non-profit bodies and government entities under the New Zealand GST,VAT Monitor, 1, 1–19.

    Google Scholar 

  • Chirelstein, Marvin R. (1988)Federal Income Taxation, 5th ed., Foundation Press, Westbury, New York.

    Google Scholar 

  • Gjems-Onstad, Ole (1990a) Tax expenditures: a criticism of the concept as applied to nongovernmental organizations,Nonprofit and Voluntary Sector Quarterly, 19:3, 279–92.

    Google Scholar 

  • Gjems-Onstad, Ole (1990b) The independence of voluntary organisations in a social democracy: governmental influences in Norway,Nonprofit and Voluntary Sector Quarterly, 19:4, 393–407.

    Google Scholar 

  • GST Goods and Services Tax. Information for Charities (undated) Revenue Canada, Customs and Excise.

  • GST Goods and Services Tax. Information for Non-profit Organizations (undated) Revenue Canada, Customs and Excise.

  • Jenkins, Peter (1993) VAT and the single market — a UK perspective,Tax Planning International Review, 20:2, 26–29.

    Google Scholar 

  • Hall, M.A. and Colombo, J.D. (1991) The donative theory of the charitable tax exemption,Ohio State Law Journal, 52, 1379–1476.

    Google Scholar 

  • International Fiscal Association (1989)Administrative and Compliance Costs of Taxation, Cahiers de droit fiscal international. LXXXIVb, Kluwer, Deventer, Netherlands.

  • Liberal and National Parties (1991a)Fightback! Taxation and Expenditure Reform for Jobs and Growth, The Liberal and National Parties' plan to rebuild and reward Australia.

  • Liberal and National Parties (1991b)Fightback! Supplementary Papers, The Liberal and National Parties' plan to rebuild and reward Australia.

  • Marx, Karl and Engels, Friedrich (1953)Ausgewählte Schriften in zwei Bänden, Band 1, Berlin.

    Google Scholar 

  • McDaniel, Paul R. and Surrey, Stanley S. (1985)International Aspects of Tax Expenditures: A Comparative Study, Kluwer, Deventer, Netherlands.

    Google Scholar 

  • McGregor-Lowndes, Myles (ed.) (1992)Incorporated Associations Manual, The Corporation Centre, Queensland University of Technology.

  • Melz, Peter (1990)Mervärdeskatten — rättsliga grunder och problem [Value added taxation — legal problems and motivation], Juristförlaget, Stockholm.

    Google Scholar 

  • Norwegian Governmental Commission on Voluntary Organizations (NOU) (1988)Frivillige organisasjoner [Voluntary Organizations], Statens trykningskontor, Oslo.

    Google Scholar 

  • Salamon, Lester M. and Anheier, Helmut K. (1992) In search of the non-profit sector. I: The question of definitions,Voluntas, 3:2, 125–51.

    Google Scholar 

  • Simon, John G. (1987) The tax treatment of nonprofit organizations: a review of federal and state policies, in Walter W. Powell (ed.)The Nonprofit Sector: A Research Handbook, Yale University Press, New Haven, Connecticut.

    Google Scholar 

  • Tait, Alan A. (1988)Value Added Tax: International Practice and Problems, International Monetary Fund, Washington, DC.

    Google Scholar 

  • Tax Executives Institute (1992)Value-Added Taxes: A Comparative Analysis, TEI, Washington, DC.

    Google Scholar 

  • Terra, B.J.M. and Kajus, Julie (1991)A Guide to the Sixth VAT Directive: Commentary to the Value Added Tax of the European Community, Vols A and B, IBFD Publications, Amsterdam.

    Google Scholar 

  • VAT and Charities (1992) Unpublished report of the conferenceVAT and Charities in the European Community, October 1992, Brussels, sponsored by the Charities' Tax Reform Group.

Download references

Author information

Authors and Affiliations

  1. Norwegian School of Management, P.O.B. 580, N-1301, Sandvika, Norway

    Ole Gjems-Onstad (Professor of Tax Law)

Authors
  1. Ole Gjems-Onstad
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

I have received valuable comments from Myles McGregor-Lowndes and two anonymous reviewers ofVoluntas.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Gjems-Onstad, O. Value added taxation and the third sector. Voluntas 4, 372–394 (1993). https://doi.org/10.1007/BF01398154

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01398154

Keywords

Search

Navigation