Question

Explain neutrality of VAT!

Answer 1

The tax on goods and services is a value added tax, which is the fundamental right of a taxpayer, as laid down in Article 86(1) of the Act on Goods and Services.

Reducing the amount of tax due by the amount of input tax on the purchase of goods and services, and the amount of input tax is the sum of the amounts of tax set out in the invoices received by the taxpayer:
-- To purchase goods and services
-- Prove the prepayment (advance payment, deposit, installment) if it was linked to any chargeable event

The taxpayer's neutrality of value added tax is expressed, inter alia, by a desire to seek, implement and protect legal solutions that ensure legal status in which the taxpayer 's value of the tax will not be the taxpayer's final cost. The taxpayer must be able to recover tax on inputs resulting from his taxed activities. In the doctrine of Community law, any implications of the concept of tax neutrality which benefit taxpayers are treated as a fundamental right to tax the taxpayer, not as a privilege.

The taxpayer's neutrality of value added tax is implemented through, inter alia, the search for, implementation and protection of legislative solutions to ensure legal status, in which the value of the tax paid by the taxpayer in the price of his purchases of goods and services used for business purposes will not constitute the final cost to the taxpayer. The taxpayer must be able to recover tax on inputs arising from their taxed activities. In the common VAT doctrine, any beneficial effects of the concept of tax neutrality are treated as a fundamental right of the taxpayer, not as a privilege