Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Boston University School of Law

2015

Banking and Finance Law

Energy commondity sector

Articles 1 - 1 of 1

Full-Text Articles in Law

Phishing & Vat Fraud In Co2 Permits: Dice In The Eu-Ets Now; Dice In Power Tomorrow, Richard Thompson Ainsworth Jan 2015

Phishing & Vat Fraud In Co2 Permits: Dice In The Eu-Ets Now; Dice In Power Tomorrow, Richard Thompson Ainsworth

Faculty Scholarship

In accordance with Directive 2003/87/EC of October 13, 2003, trade in greenhouse gas emissions commenced in the European Union (EU) on January 1, 2005. The EU-Emissions Trading System (EU-ETS) was born.

The EU has a Value Added Tax (VAT). VAT is a transaction-based levy on all trade in goods and services. Each Member State has a VAT as a condition of membership. Until January 3, 2017 transactions in CO2 permits are taxed as services. After this date they are exempt as financial instruments.

This change in VAT treatment of CO2 permits is directly attributable to rampant fraud in the market. …