- As is known, VAT is a tax paid by taxpayers to the tax authorities, but is actually borne by the recipients of the goods and services subject to the tax. This transfer of VAT to customers is carried out through the repercussion of the tax.
- The principle of full regularization can be defined as the restoration of the taxpayer’s situation to that which should have occurred if the VAT had been applied correctly. This principle raises problems in VAT tax audits, carried out on taxpayers who have to pay VAT (situation A) or who want to deduct it when it has been unproperly borne (situation B), precisely because of the repercussion mechanism.
- This is a summary of some of the ECJ’s conclusions on this topic and complete them with some additional comments.
Source Francisco Javier Sánchez Gallardo
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