Copenhagen Economics and KPMG (Final report of 1 March 2011)1 on analysing the impact of the current Value Added Tax (VAT) rules applicable to the public sector, to identify options for alternative rules and to assess their impact.

This study will simulate the impact of variants of three options previously identified, which now will include postal services for modelling purposes.
The three options are the following:
1) Full taxation option in its alternative that a liability to tax requires supplies against consideration
2)Refund system
3) The option according to which the special rules relating to public bodies (Article 13 of the VAT Directive) would be deleted, while keeping tax exemptions in the public interest.
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