{"@context":"https://schema.org","@type":"DefinedTerm","name":"VAT neutrality","description":"VAT neutrality is achieved when a business can fully offset input tax paid on purchases against output tax due on sales, leaving neither a net tax liability nor a surplus credit. The principle ensures that value-added tax falls economically on the final consumer alone and not on businesses in the supply chain. It is maintained through four main mechanisms: the right to deduct input tax, zero-rating of exports, the reverse-charge mechanism for cross-border supplies, and exemptions for defined act","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/vat-neutrality","inLanguage":"en","dateModified":"2026-06-26T17:22:45.970303","citation":"https://ec.europa.eu/taxation_customs/business/vat/index_en.htm","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/vat-neutrality","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"VAT neutrality · VAT neutrality is achieved when a business can fully offset input tax paid on purchases against output tax due on sales, leaving neither a net tax liability nor a surplus credit. · Quelle: https://ec.europa.eu/taxation_customs/business/vat/index_en.htm"}