Везде
VAT in Cross-Border Activities: Ensuring the Implementation of the Neutrality Principle
Table of contents
Abstract Estimate Publication content
References Comments
Share
QR
Metrics
VAT in Cross-Border Activities: Ensuring the Implementation of the Neutrality Principle
Abstract
PII
S1991-32220000622-3-1
DOI
10.61205/jzsp.2024.3.1
Publication type
Article
Status
Published
Authors
Yuliya Shved 
ORCID: 0000-0002-0823-9193
Occupation: Tax Partner, Law Firm “Lexefiscal”
Affiliation: Belarusian State University
Address: Minsk, Belarus
Edition
Volume 20 No. 3
Pages
37-49
Abstract

The main principle of building a regulatory legal framework governing the value added tax (VAT) is the private principle of neutrality, the implementation of which in the framework of foreign economic activity is also conditioned by the principles of territoriality and tax collection in the country of destination. A certain flexibility in the interpretation of the principles makes it possible to take into account modern economic realities and the goals pursued for the transformation of social practices. Accordingly, the normative legal construction of the VAT mechanism and the subsequent systematic building of law enforcement practice based on the above principles and taking into account their conditionality by a set of structural characteristics of the tax allows us to build an optimal model of value added taxation.

The purpose of the study is to analyze the content and practical implementation of the principles that determine the VAT mechanism of foreign economic activity, in order to further ensure the neutrality of VAT.

Research methods: dialectical, analysis and synthesis, deduction and induction, comparative legal.

Conclusions: Ensuring the VAT neutrality of cross-border transactions within the framework of the requirements limited by the principle of territoriality can be implemented by structuring the VAT mechanism based on the principle of the country of destination. Understanding the content of the above principles allows to determine the best ways to develop legal regulations in relation to VAT of cross-border transactions. In particular, the implementation of the destination principle implies the necessity of legislative regulation of the following aspects of VAT: 1) determining the place of supply (taxation); 2) the procedure for taxation at the place of supply; 3) the existence and procedure for exercising the right to reimburse the amounts of input tax; 4) the procedure for reimbursement of paid amounts of VAT (input tax).

Keywords
value added tax, neutrality principle, territoriality principle, destination principle, OECD, EAEU, place of supply, Republic of Belarus
Date of publication
06.06.2024
Number of purchasers
3
Views
83
Readers community rating
0.0 (0 votes)
Cite Download pdf

To download PDF you should pay the subscribtion
1

References



Additional sources and materials

1. Ecker T. A VAT/GST Model Convention. Tax Treaties as a solution for value added tax and goods and services tax double taxation. Vienna, 2012. 385 p. 
2. Carter A. (ed.). International Tax Dialogue: Key Issues and Debates in VAT, SME Taxation and the Tax Treatment of the Financial Secto. Available at: www.itdweb.org (accessed 26.10.2016). 
3. Januskova M. The principle of neutrality: VAT and direct taxes. In: Pfeiffer S., Ursprung-Steindl M. (eds). Global Trends in VAT/ GST and Direct Taxes. Vienna, 2015. 773 p. 
4. Kostovska E. VAT refund for non-residents, 2011. International Tax Review. Available at: http://search.proquest.com/docview/ 866291957?accountid=29104 (accessed 11.08.2019). 
5. Lejeune I. The Balance Has Shifted to Consumption Taxes — Lessons Learned and Best Practices for VAT. In: Lang M., Meltz P., Kristofferson E. (eds). Value Added Tax and Direct Taxation. Similarities and Differences. Amsterdam, 2009. Pp. 59—102. 
6. Liu D. China offers VAT refund for purchase of equipment manufactured domestically. International Tax Review, 2000, vol. 11, iss. 4. 
7. Millar R. Echoes of Source and Residence in VAT Jurisdictional Rules. In: Lang M., Meltz P., Kristofferson E. (eds). Value Added Tax and Direct Taxation. Similarities and Differences. Amsterdam, 2009. Pp. 275—321. 
8. Millar R. Taxable Amount: Fiscal Neutrality in Action. In: Lang M., Pistone P., Schuch J., Staringer C., Raponi D. (eds). ECJ — Recent Developments in Value Added Tax. The Evolution of European VAT Jurisprudence and its Role in the EU Common VAT System. Vienna, 2013. Pp. 223—245. 
9. Rohatgi R. Basic International Taxation. 2nd ed. Vol. 1: Richmond Law and Tax, 2005. 467 p. 
10. Schenk A. Worldwide v. Territorial Tax Systems: Comparison of Value Added Tax and Income Tax. In: Lang M., Meltz P., Kristofferson E. (eds). Value Added Tax and Direct Taxation. Similarities and Differences. Amsterdam, 2009. Pp. 257—273. 
11. Terra B. The Place of Supply in European VAT. London, 1998. 307 p. 
12. Traversa E. Taxation and Direct Taxes: How to Achieve Some convergence within a Summa Divisio? A European Perspective. In: Lang M., Meltz P., Kristofferson E. (eds). Value Added Tax and Direct Taxation. Similarities and Differences. Amsterdam, 2009. Pp. 339—368. 
13. Verstraeten A. A. Double (Non-) Taxation in VAT and Direct Taxes: Which Tax Is Better for Developing Countries? In: Lang M., Meltz P., Kristofferson E. (eds). Value Added Tax and Direct Taxation. Similarities and Differences. Amsterdam, 2009. 1296 p. 
14. Babanova Yu. V. Legal facts in tax law. Cand. diss. thesis. Moscow, 2012. 24 p. (In Russ.) 
15. Balashenko S. A. Legal Modelling as a Method of law-Making Activity. Vestnik BDU. Ser. 3, 2015, no. 3, pp. 94—97. (In Russ.) 
16. Gidirim V. The principle of residence of corporations in international tax law. Mezhdunarodnoe pravo, 2013, no. 1. (In Russ.) 
17. Grusha A. V. Analysis of the application of the country of destination principle when collecting VAT within the framework of the Customs Union of the Republic of Belarus, the Russian Federation and the Republic of Kazakhstan: priorities of the Republic of Belarus. Kiev, 2013. Pp. 22—24. (In Russ.) 
18. Em A. V. Legal regulation of VAT collection on international trade in services in electronic form. Cand. diss. Moscow, 2019. 173 p. (In Russ.) 
19. Zhuravleva O. O. Object of tax (fee) as a category of tax law. Cand. diss. Moscow, 2003. 227 p. (In Russ.) 
20. Kamenkov V. S. On the goals and objectives of the Tax Codes of the Republic of Belarus and the Russian Federation (comparative analysis). Current problems of legal science and law enforcement practice: collection of materials of the IV International. scientific and practical conference, Cheboksary, November 4, 2014. Cheboksary, 2014. (In Russ.) 
21. Kilinkarova E. V. Offset and refund of overpaid and overcharged tax payments. Moscow, 2010. 154 p. (In Russ.) 
22. Kudryashova E. Legal aspects of indirect taxation: theory and practice. Moscow, 2006. 263 p. (In Russ.) 
23. Milogolov N. S. Value added tax on international trade in services. Cand. diss. Moscow, 2014. 167 p. (In Russ.)
24. Milogolov N. S., Medvedeva O. V., Semkina T. I. Place of sale of services in the VAT calculation system. International approaches and legislative innovations. Finansy, 2012, no. 9, pp. 38—42. (In Russ.) 
25. Vinnitskiy D. V. (ed.). Tax law of the Eurasian Economic Community: legal regime of value added tax. Moscow, 2010. 304 p. (In Russ.) 
26. Pepelyaev S. G. Tax Law. Moscow, 2000. 608 p. (In Russ.) 
27. Pilipenko A. A. Fair principles in taxation. Law and democracy: collection of scientific works. Iss. 17. Ed. by V. N. Bibilo. Minsk, 2006. (In Russ.) 
28. Churkin A. V. The concept of the object of taxation and the problems of its definition in legislation. Cand. diss. Moscow, 2002. 175 p. (In Russ.) 
29. Shved Yu. N. Neutrality of Value Added Tax: Substance of the Principle. Journal of Foreign Legislation and Comparative Law, 2022, vol. 18, no. 6, pp. 54—67. (In Russ.) DOI: 10.12737/jflcl.2022.075. 
30. Shelkunov A. D. The principle of value added tax neutrality. Moscow, 2017. 127 p. (In Russ.) 
31. Shuvalova E. B. Value added tax system in the Russian Federation. Dr. diss. Moscow, 2003. 448 p. (In Russ.)

Comments

No posts found

Write a review
Translate