Global Trends in VAT/GST and Direct Taxes

S. 167I. Introduction

Even though taxes do not enjoy popularity all over the world, at least where they are levied, they are very important and necessary for us. Not only is our social life dependent on taxes, but also our future, our children’s education, our security and a lot more. So generally we gain something back by paying the taxes, sometimes with direct consequences but often in an indirect way when taxes are paid for the public good, which is equally important for the social life of each individual person. Here, the definition of taxable persons first comes into play. The concept of taxable person is very important as taxes are, by definition, paid by persons. In simplified terms, taxable persons are generally defined either in a physical or jurisdictional meaning. The definitions in the respective tax laws, whether in direct or indirect tax acts, are of major importance, as they are the starting point from which a tax system should be established. Defining a taxable person generally means defining the person who is liable for such tax. However, in the VAT system these could be different persons. The scope of tax liability, therefore, is linked with the concept of taxable person...