Abstract

Value Added Tax is a levy with a particularly specific design. It is intended to be neutral for businesses, yet the right to deduct input tax leads to a paradox: in B2B relations, taxation itself often results in no real tax burden, while tax exemption in those very same relations may, conversely, create an actual financial burden. Against this backdrop, the Author explores whether applying a VAT exemption in a transaction between VAT taxpayers could, in itself, be regarded as an abuse of law-regardless of whether other conditions for establishing such abuse are met.