Abstract

The introduction of the definitive VAT system applicable to the taxation of trade between individual Member States of the European Union is an intention already established in 1967 in the First Council Directive of 11 April 1967 on the laws of the Member States relating to turnover taxes. Since then, the concept of the definitive VAT system to be introduced in the European Union has changed significantly, from a model based on taxation in the origin Member State to that based on taxation in the destination Member State. Despite the significant progress in the work on the definitive VAT system, which is to be introduced, the taxation model initially adopted as a transitional solution is still in force in the form of intra-Community acquisition of goods and intra-Community supply of goods. This article attempts to discuss two concepts of the definitive VAT system with particular emphasis on the legal solutions that are to apply to the model based on taxation in the destination Member State.