Abstract
This paper focuses on making of VAT deduction as a legal instrument by which is fulfil the principle of the VAT neutrality. At the beginning the reader shall be introduced into the issue of the group registered to VAT as a kind of quasi entity who is provided with the status of the tax subject by the VAT Act.
Later, the VAT deduction institute is introduced itself. In conclusion author devotes himself to the terms for making a VAT deduction.
This chosen issue is analysed from the view of the European Union legislation and the case law of the Court of Justice of the European Union as well.