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

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