Transformation of the principle of VAT neutrality in the digital age

Abstract

Neutrality has always been a key principle of taxation, on the basis of which the economic and legal structure of value added tax (VAT) was initially formed. At the same time, the establishment of the obligation to register a foreign organization that provides electronic services to Russian consumers actually negates the effect of such a principle. The article deals with problematic issues of legal regulation of obtaining a VAT deduction by a foreign taxpayer provided for under the condition that contradict the VAT structure and put Russian and foreign taxpayer suppliers in an unequal position. Attention is drawn to the actual difficulties of identifying new digital phenomena from the point of view of their attribution to the objects of VAT taxation. It is noted that at present the problem of developing fundamental ideas on how to tax and administer the activities of foreign companies subject to VAT in the new digital realities at the Russian and supranational levels is significant.