Dependent Activities vs. Independent Activities in Application of VAT Rate to Individuals

Applying the Fiscal Code in reference to the VAT issue to individuals has raised many controversies in practice. This case study is considering the applicability of VAT against an individual who has assigned certain patent rights to a legal entity and then, willingly becoming a VAT payer. In these circumstances, the fiscal authorities calculated penalties between the moment the individual registered as a VAT payer and the moment the VAT would have actually been due. However, it has turned out in court that the VAT was not due at all.