| Abstract [eng] |
Problems of VAT Deduction at the National and European Union level Vaidas Maksvytis This master thesis provides analysis of the institute of the right to deduct value added tax, based on the latest case law of the Supreme Administrative Court of Lithuania and the Court of Justice of the European Union, together with the analysis of Lithuanian and European Union legislation. The right to deduct value added tax manifests itself in the implementation of the requirements regulated by law. However, it is important to pay attention to cases of loss of the right to deduct value added tax, in other words, restriction of the right. Therefore, the conditions of fraud, abuse and dishonesty are also analyzed in this master thesis as preconditions for restricting the right to deduct value added tax. The paper first reviews the value added tax system itself. Lithuania, as a member of the European Union, not only trades domestically, but is part of the common market, therefore, the essential aspects of this system are initially revealed. Next, the very concept of the right to deduct VAT is analyzed. The importance of the principle of neutrality in the exercise of an economic activity is seen, when there are obligations to pay value added tax. An analysis of relevant and recent case law reveals important decisions that affect value added taxpayers and those wishing to deduct the tax paid. For example, the importance of formal requirements as a basis for restricting the right to deduct VAT is declining. However, an analysis of the relationship between the application of a 0% VAT rate to supplies to the Member States of the European Union and the right to deduct shows that the application of a 0% rate still has stricter formal rules. |
