Value-added tax point date for entities supplying or distributing electricity and natural gas: the weak points of the legal solutions adopted

2020 ◽  
Vol 6 (286) ◽  
pp. 4-9
Author(s):  
Beata Rogalska
Keyword(s):  
Value Added ◽  
General Nature ◽  
Value Added Tax ◽  
Power Sector ◽  
General Rules ◽  
Weak Points ◽  
Legal Arguments ◽  
The Moment ◽  
The Right ◽  
Rules Set

There are certain substantial legal arguments to justify the statement that entities running clearing houses/agencies at commodity exchange should recognise their tax obligation according to the general rules laid down by Article 19(a), clause 1 of the Value-Added Tax of 11th March 2004––that is, as from the moment electricity or nat - ural gas is supplied or distributed. The actions of such agencies or houses namely consist only in clearing and/ or of transactions entered into and concluded by their members at trade exchanges, in respect of gas and electricity (inter alia). Hence, these actions boil down to a peculiarly virtual transfer of the right to use energy or gas to the specified entities. Consequently, highly specialised, professional actions ought to be taken into account–– such which are related to a special type and specificity of actions performed in the energy/power sector––along with typical actions. The latter basically include accounting and clearing/settlement actions, that is, actions of a general nature, performed across the sectors. In performing their accounting, clearing and/or settlement actions, the clearing houses/agencies should not be subject to the rules set forth in Art. 19(a), clause 5, item 4(a) & (b) of the aforesaid VAT Act.

Prompt implementation of the right to deduct input tax in light of EU regulations

2020 ◽  
Vol 3 (283) ◽  
pp. 9-15
Author(s):  
Beata Rogalska
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Eu Regulation ◽  
Settlement Period ◽  
Economic Event ◽  
Formal Requirement ◽  
The Moment ◽  
The Right ◽  
The Eu ◽  
Made In

In a situation where the taxpayer [resp. person taxable] holds an invoice prior to submittal of the return/statement for the settlement period in which the tax obligation occurred on the part of the contracting party, the term laid down in Article 178 (a) of Directive 112 has been met. Whilst the holding of an invoice is the only formal requirement, the notion of ‘holding’ ought to be interpreted in a manner compliant with its colloquial understanding. In turn, ‘holding’ is not equal in meaning to ‘receiving’/‘receipt’. In the event that an economic event has occurred and the taxpayer is capable of giving evidence for it, as he holds the invoice at the moment the tax settlement is made in the return/ statement, there are no grounds that would be legitimate under the EU laws for arguing that the taxpayer must shift his vested right to have the input tax deducted to the subsequent month, being the months in which he receives the invoice. The rule of prompt implementation of the right to deduct input tax should be taken into account. If the national regulations provide for shifting the above-specified moment through formulating any additional conditions are contrary to Directive 112. It is therefore apparent that Article 86, clause 10 (b), item 1 of the Polish Value-Added-Tax Act of 11th March 2004 is not in agreement with Article 178 (s) of Directive 112 as the former sets forth a condition that is not provided in the said EU regulation–namely, the right to have the output tax reduced by the input tax only as part of the settlement for the month in which the taxpayer receives the invoice.

Gloss to the judgement of the Supreme Administrative Court composed of seven judges dated 28 October 2019, file reference I FSK 164/17 (infrastructure lease by the commune for the symbolic rent)

2020 ◽  
Vol IV (IV) ◽  
pp. 97-106
Author(s):  
Przemysław Ostojski
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Playing Field ◽  
The Subject ◽  
The Right ◽  
Individual Interpretation

The Commune applied to the tax authority for issuance of an individual interpretation concerning value added tax within the scope of the right to deduct, by way of adjustment, the tax charged in connection with the implemented investment – Construction of the mobile seasonal playing field [...]. The application states that the Commune is an active and registered taxable person for the purpose of value added tax. The subject infrastructure was ransferred for uncharged use in 2012. The investment has not been applied for taxable services due to its character. Currently, the Commune considers letting infrastructure for lease to the Municipal-Community Cultural Centre pursuant to the agreement. After transfer, the infrastructure would still be used as intended. The Commune views charging rent at the leaseholder in the amount of several hundred zloty per year. In addition, after transfer the infrastructure must perform its functions and remain public. The Commune has not deducted expenditure incurred on the infrastructure throughout its construction. All invoices documenting purchases have been issued for the Municipality and Communal Office, which is an active VAT payer. In relation to the above description, the following question is asked: “Shall the Commune obtain the right to deduct tax charged in connection with the above-mentioned investment in proportion to the remaining period of adjustment, pursuant to Article 90 et seq. of the Act on Value Added Tax of 11 March 2004?”.

scholarly journals Subsidies and Value-Added Tax: A Comparative Study of Law and Practice in Canada and the European Union

2019 ◽  
pp. 533-579
Author(s):  
Robert F. van Brederode ◽  
Simon B. Thang
Keyword(s):  
European Union ◽  
Comparative Study ◽  
Private Consumption ◽  
Value Added ◽  
The European Union ◽  
Value Added Tax ◽  
Administrative Practices ◽  
Consumption Expenditures ◽  
Goods And Services ◽  
The Right

Value-added tax (VAT) is a tax levied on private consumption expenditures. Where VAT is levied on each transaction within the supply chain, the aim of taxing only private consumption is achieved by allowing businesses a credit to offset the VAT paid on purchases against the VAT collected on sales. This article provides a comparative study of the law and practice in the European Union and Canada regarding subsidies and VAT (in Canada, the goods and services tax). Subsidies are among the financial instruments used by governments, and sometimes private organizations, to support the realization of certain policies. This article is concerned with determining the circumstances in which subsidies may be included in the consideration paid in a transaction and may therefore be subject to VAT, and the extent to which the right to claim input tax credits can be exercised. The authors investigate these questions by discussing the nature of subsidies from the perspective of VAT principles, reviewing the statutory provisions and administrative practices in the European Union and Canada, and analyzing the relevant case law in both jurisdictions.

Taxation as a Human Rights Issue

2019 ◽  
pp. 81-98
Author(s):  
Sandra Fredman
Keyword(s):  
Human Rights ◽  
Value Added ◽  
Care Work ◽  
Value Added Tax ◽  
Substantive Equality ◽  
Indirect Taxes ◽  
And Gender ◽  
The Right ◽  
Rights Issue

This chapter suggests a four-dimensional conception of substantive equality to evaluate the gendered impacts of taxation policies from a human rights perspective. The four-dimensional framework of substantive equality in relation to gender regards the right to equality as aiming to, first, redress disadvantage (the redistributive dimension); second, address stigma, stereotyping, prejudice, and hatred (the recognition dimension); third, facilitate participation and voice (the participative dimension); and, fourth, accommodate difference and transform gendered structures in society (the transformative dimension). This multidimensional conception of substantive equality functions as a valuable tool in evaluating taxation systems for their impact on gender. The chapter then looks at two particularly challenging aspects of taxation and gender: the role of care work, and the role of value-added tax (VAT) and other indirect taxes.

TAX CONTROL OF VAT REFUND IN RUSSIA AND IN THE SCANDINAVIAN COUNTRIES ON THE EXAMPLE OF TIMBER INDUSTRIES

2020 ◽  
Vol 6 (2) ◽  
pp. 168-192
Author(s):  
Yulia E. LABUNETS ◽  
Igor A. MAYBUROV
Keyword(s):  
Russian Federation ◽  
Negative Impact ◽  
Value Added ◽  
Value Added Tax ◽  
Timber Industry ◽  
Foreign Countries ◽  
The Russian Federation ◽  
The Right ◽  
Industry Sectors ◽  
Budget System

This article is devoted to the study of the mechanisms of tax control of value-added tax reimbursement in Russia and in the Scandinavian countries. The research methodology is based on a comparative analysis of current VAT taxation mechanisms in Russia and in Norway, Sweden, and Finland. In addition, a comparison was made of the basics of organizing the process of tax control over the reimbursement of value added tax in these countries. This paper examines statistical data on the volume of value-added tax receipts to the budget system of the Russian Federation from taxpayers engaged in business activities in the Russian timber industry. It was found that with the General trend of increasing the level of business activity of economic entities in the timber industry, the share of income from value-added tax for the period 2012-2018 was on average negative, due to the presence of significant volumes of export operations and the predominance of VAT refund processes over its payment to the budget system of the Russian Federation. The paper examines the economic essence of the concept of compensation for value added tax on the example of branches of the timber industry as the right of VAT taxpayers established by the legislation on taxes and fees. At the same time, we also studied the negative impact on the level of tax security of the country of mechanisms for unjustified compensation of value-added tax on the example of the Russian timber industry. The mechanism of tax control of the value added tax claimed for reimbursement by taxpayers of the timber industry sectors of the Russian Federation is considered. positive trends in automation of control processes during in-house VAT tax audits are noted. We have studied the processes of value-added tax reimbursement and the mechanisms of tax control of these processes in the Scandinavian countries. Based on the results of the study, recommendations are proposed for adapting certain control methods used by tax authorities of foreign countries in the process of tax control of value-added tax compensation to the existing tax control mechanism in Russia.

Relations Between the Principle of Neutrality and Elements of Value Added Tax Structure

2021 ◽  
Vol 17 (3) ◽  
pp. 56-63
Author(s):  
Paweł Daniel
Keyword(s):  
Value Added ◽  
Equal Treatment ◽  
Tax Rates ◽  
The European Union ◽  
Value Added Tax ◽  
Tax Neutrality ◽  
The Subject ◽  
Special Rules ◽  
The Right ◽  
Method Analysis

Abstract The principal of neutrality is a key principle of the European Union (EU) Value Added Tax (VAT) system. The concept of tax neutrality has a number of dimensions and meanings. The purpose of the article is to examine whether the principle of neutrality shapes the main elements of VAT structure, what concepts of tax neutrality are proper to shape each of those elements, and how the principle of neutrality affects each of those elements. The method adopted for the examination is a doctrinal method – analysis of the VAT Directive provisions (using a formal-dogmatic approach supported by analysing selected judgements of the Court of Justice of the EU) but without those that concern special rules. The study showed that the basic elements of the VAT structure such as the subject of taxation, object of taxation, tax basis, tax rates, exemptions, and conditions of payment are shaped in different manner and extent by the principle of neutrality. Tax neutrality in its basic sense (marked N1) has the strongest influence on basis of taxation (improper amount of the basis disallows shifting the tax forward onto the customer and regaining output tax to relieve the taxable person entirely from the burden of the VAT) and obviously it influences the right to deduct input tax likewise in the tax period (term of refund). Tax neutrality in another sense (marked N2) by demanding equal treatment, affects such VAT elements as subject and object of taxation, exemptions and rates. Tax neutrality in the broadest sense (N3), as a term consisting of N1 and N2, concerns all the elements of VAT.

scholarly journals "Pay Now, Argue Later" Rule – Before and After the Tax Administration Act

2017 ◽  
Vol 16 (4) ◽  
pp. 124
Author(s):  
Carika Keulder
Keyword(s):  
South African ◽  
Value Added ◽  
Prima Facie ◽  
Tax Administration ◽  
Constitutional Court ◽  
The South ◽  
Value Added Tax ◽  
Significant Difference ◽  
The Right ◽  
Right Of Access

The South African Revenue Service (SARS) is entrusted with the duty of collecting tax on behalf of the South African government. In order to ensure effective and prompt collection of taxes, the payment of tax is not suspended pending an objection or an appeal, unless directed otherwise. This is also known as the "pay now, argue later" rule, and, for value-added tax purposes, is provided for in terms of section 36 of the Value-Added Tax Act 89 of 1991. The "pay now, argue later" rule in terms of section 36 of the Value-Added Tax Act prima facie infringes on a taxpayer's right of access to the courts as envisaged in section 34 of the Constitution. This is due to the fact that a taxpayer is obliged to pay tax before being afforded the opportunity to challenge the assessment in a court. In Metcash Trading Ltd v Commissioner for the South African Revenue Service, the Constitutional Court held the "pay now, argue later" rule in terms of section 36 to be constitutional. Olivier, however, does not agree with the court on several matters. Amongst the problems she indicates are that the taxpayer does not have access to the courts at the time the rule is invoked, and that the court did not consider the fact that there might be less invasive means available which would ensure that SARS's duty is balanced with the taxpayer's right of access to the courts. Guidelines were also issued which provide legal certainty regarding the factors SARS may consider in determining whether the payment of tax should be suspended or not. These guidelines also evoked some points of criticism. Since 1 October 2012, the "pay now, argue later" rule has been applied in terms of section 164 of the Tax Administration Act 28 of 2011. The question arises whether this provision addresses the problems identified in respect of section 36 of the Value-Added Tax Act and the guidelines. In comparing these sections, only slight differences emerged. The most significant difference is that section 164(6) of the Tax Administration Act stipulates that the enforcement of tax be suspended for a period when SARS is considering a request for suspension. Section 164(6) does not provide a solution to the problems identified regarding section 36 of the Value-Added Tax Act. It is even possible that this section could give rise to further problems. Therefore, the legislature has failed to address the imbalance between the duties of SARS and the right of a taxpayer to access the courts.

scholarly journals Features of Determining the Beginning of the Limitation Period

2019 ◽  
pp. 212-224
Author(s):  
Vitaliia ROMANIUK
Keyword(s):  
Objective Criterion ◽  
Real Possibility ◽  
The Real ◽  
Calendar Date ◽  
Subjective Criterion ◽  
General Rules ◽  
The Moment ◽  
The Right ◽  
Legal Entities

The article defines the features of calculating the limitation period, describes the rules and criteria for determining the beginning of the limitation period. The objective and subjective criterions of beginning of motion of this term are distinguished. On an objective criterion the beginning of term of limitation period begins from the moment of violation of right and interest of person. A subjective criterion marks a moment, when a person knew or could know about violation of the right or person of violator. In this case, the real possibility of such awareness is important, not actual. For legal entities, the subjective criterion is realized through the officials (authorized) of its persons or persons within the organ to which the functions assigned to them are exercised. It is determined that the calculation of the commencement of the limitation period for legal entities does not depend on the change of its authorized persons. The correctness of the calculation of the limitation period from the day after the calendar date in which the offense occurred, which meets the general rules for the calculation of terms and deadlines, is substantiated. It is stated that on the last day of fulfilment of the obligation the person has the right to fulfil it by the end of the day. At the same time, the procedure of applying to the court for technical reasons cannot always be implemented on the day the claim arises, since it requires the preparation of a procedural document — a statement of claim. The features of calculation of term of limitation period are certain for credit obligations and obligations of minor persons. It is concluded that in credit obligations, the limitation period should be calculated from the moment of default, not its parts, that is, the day after the contract expires. However, if the creditor files a claim for full early repayment of the debt, the limitation period should be calculated from the next day after the claim is made. For minors, it is reasonable to calculate the limitation period from the moment of its acquisition or granting them full civil capability.

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