Supply of goods free of charge in value added tax system

Consideration represents one of the cumulatively prescribed conditions for the taxation of supplies of goods in value added tax system. In the absence of consideration there is in general no basis for taxation, which makes room for untaxed final consumption - the case in which a taxpayer deducts inp...

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Bibliographic Details
Main Author: Milošević Miloš
Format: Article
Language:English
Published: University of Belgrade, Faculty of Law, Belgrade, Serbia 2015-01-01
Series:Anali Pravnog Fakulteta u Beogradu
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Online Access:http://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2015/0003-25651502094M.pdf
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Summary:Consideration represents one of the cumulatively prescribed conditions for the taxation of supplies of goods in value added tax system. In the absence of consideration there is in general no basis for taxation, which makes room for untaxed final consumption - the case in which a taxpayer deducts input VAT on purchased good that is subsequently used for his own or another person's final consumption free of charge. In this paper, the author analyzes the situations in which, for taxation purposes, the supplies of goods free of charge will be treated equally as supplies for consideration and, relying on the jurisprudence of the European Court of Justice, notes the deviations of the domestic practice from the communautaire one, while providing concrete recommendations for their elimination.
ISSN:0003-2565
2406-2693