Cross-borderity as a factor affecting the application of a «zero» vat rate

Abstract

The aim of the work is to study the specifics of the application of the value added tax rate, equal to zero, depending on the territorial limits of Russian national jurisdiction, based on the existing judicial, administrative practice, as well as the experience of countries where a similar tax structure is applied. Accordingly, the tasks of the work are: determination of the principle of extertoriality of imported goods, as well as the work performed and the services rendered when they cross the customs border of the Eurasian Economic Union; identification of problematic issues of judicial practice in tax disputes of this category; generalization of the experience of countries applying cross-border zero VAT rate. The goals and objectives of the work determined the research methodology, which is based on general philosophical heuristic methods, as well as the method of comparative analysis, system-structural method. The principal result of this work is the idea that "zero VAT" in the Russian Federation is a means of tax incentives and indicates that Russian tax law in this part follows the European model of development, abandoning turnover tax, on the one hand, and adopting conditions for VAT refund - on the other. At the same time, the mechanism of VAT refunds in Russia allows this to be done only by organizations engaged in rather specific activities or exporting (importing) strictly defined commodity items. That is, exporters and importers are VAT payers, they are not exempted from paying it, but they receive a subjective right to compensation, which is placed in a rather rigid procedural framework.