- The value-added tax (IVA) is a tax on consumption.
- The IVA is based on the principle of neutrality, which means that the tax burden should ultimately fall on the final consumer.
- The IVA is designed to be paid in multiple stages, with each company paying IVA on their inputs and receiving IVA on their products.
- The IVA paid by each company is offset against the IVA received, resulting in a net payment to the tax authorities.
- The principle of neutrality ensures that the tax burden falls on the final consumer and not on intermediaries in the supply chain.
- The principle of neutrality is derived from the principle of capacity to contribute and is part of the constitutional principle.
- There may be violations of the principle of neutrality in the current legislation, which will be analyzed in the coming weeks.
Source: consortiumlegal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
