The need of demonstration and study the taxpayer’s status, treated as the main element of the procedure of verification the correctness of VAT settlements

Abstract

The above elaboration concerns the issues of contractor’s verification duties, which the VAT taxpayer is obliged to fulfill as part of their business. Within the scope of analy­sis, the author proves that the need of mutual control of taxpayers’ fiscal status should be treated as a consequence of the Value Added Tax legal construct. The scope of duties is related to the type of special VAT procedure, which applies to taxpayer’s particular ac­tivities. It should be noted, that the taxpayer is obliged to filling the verification duties arising from the provisions and, in order to reduce tax risk, he should remember about the recommendations of the tax authorities in this regard. The author points out that the verification procedures used by VAT taxpayers, should be treated as a regular part of the operations within the system of goods and services tax.