The principle of equality in the refund of VAT credits

Salomon Malang

• 30 maart 2023
• 9786205858608

Samenvatting:

VAT credits remain at the heart of many tensions between the tax administration and taxpayers. Taxpayers are concerned that the rules for the refund of VAT credits appear to be irrational and not objective. They raise a problem of discrimination and non-compliance with the constitutional principle of equality. Therefore, it is necessary for the Tax Authorities to rethink their sense of fairness because their implementation of the VAT credit refunds takes into account subjectivity instead of objectivity and the differentiated nature of the situation. The situation here being similar, the same rules should be adapted or revised according to the risk of the taxpayers that the legislator intends to evaluate. Thus, there are two aspects that the legislator must take into account in order to create inequalities: a factor of difference of situation between taxpayers and a restriction that takes into account the fact of moderation of inequalities.