By Francisco Javier Sánchez Gallardo
VAT is supposed to be neutral. It is assumed that the VAT taxpayer enters the tax to the Public Treasury and passes it to the client. The charging and the deduction of VAT, which in the world of VAT is known as a fractional payment mechanism, makes VAT reach the final consumer. In this logical scheme, it is essential to specify who the recipient is in each operation subject to taxation and on this issue the case-law of the ECJ is not simple.
Source: LinkedIn
