Pryvarskyi Y. Legal mechanism of Value-Added Tax: national ‘use of law’ practice and european experience

Legal nature and genesis of Value-Added Tax as an element of the tax system is analysed in the first part of the paper. Parts of VAT legal mechanism are studied. Main and additional elements are described. Peculiarities of legal regulations of Value-Added Tax in EU countries are investigated in the second part, particularly elements of tax legal mechanism in these countries. Special attention is paid to the fact that taxpayers in Ukraine are the same as in European countries. However, registration procedures of VAT payers and limit of business transactions, which determines the necessity of VAT payer registration, are different. The object of Value-Added Tax in Ukraine and EU members and places of delivery of goods and services are almost the same. Kinds of business transactions, which are free of taxes, are different. It is caused by the tax policy of some countries, which want to stimulate some social important for the country branches with the help of tax reduction. Some aspects of case law in disputes over the application of the legal mechanism of value added tax are analysed in the third part. Case law in the field of budgetary reimbursement of value added tax is analyzed. It is stated according to the norms of tax legislation, that reliability of taxpayer accounting date doesn`t depend on contractors` tax discipline, if this taxpayer (buyer) had real costs purchasing goods (works, services) for his economic activity. It is necessary to have evidence which confirms the fact that transactions were not real to establish the fictitiousness of business transactions.