Claim on VAT refund prior to the date of registration
According to Article 55 of the VAT Act, a person who becomes a VAT payer is eligible for the VAT refund – ex-post tax discharge of fixed assets and unexpended inventories acquired prior to registration.
For these purposes the following conditions are to be fulfilled:
The VAT payer will deduct such tax in the extent and under the conditions stipulated in Articles 49 to 51 of the VAT Act.
Tax base and tax rate
The tax base upon the delivery of goods or provision of service is compound of all the supplier has acquired or shall acquire as a consideration from his customer or any other person for the delivery of goods or provision of service, reduced by the tax.
If at the time of delivery of goods or provision of service the supplier grants a deduction from the price or grants a discount based on an early payment, the tax base is decreased by the amount of such discount.
The basic tax rate on goods and services amounts to 20% of the tax base. A decreased tax rate of 10%
Obligation to issue a tax document – rise of tax liability
As of the date of registration the VAT payer becomes obliged to issue a tax document – an invoice upon every rise of tax liability within 15 days thereafter the latest. The VAT payer should issue an invoice upon every delivery of goods and provision of service for a taxable person and for a legal entity not being a taxable person. The VAT payer is not obliged to issue an invoice upon tax free fulfillment except for tax free delivery of goods to EU.
According to the provisions of the VAT Act as they stand at the present, the rise of tax liability which makes the VAT payer obliged to issue a tax document is considered to be every
Domestic repeated fulfillments with payments agreed for a period exceeding 12 calendar months are subject to tax on the last day of the respective 12th calendar month.
In case of repeated provision of “reverse charge” services from supplier of another EU Member State with payments agreed for a period exceeding 12 calendar months the tax liability arises by the end of each calendar year. This is also applicable to EU services provided partially.
Services acquired on behalf of the VAT payer but at expense of a third party are subject to tax on the date when the invoice is issued by the VAT payer as an intermediary however not later than on the last day of the third month following the real provision of the services.
When issuing the tax documents the VAT payer should follow the stipulations of the VAT Act.
Requirements on the tax documents for the VAT purposes
The VAT payer is obliged to have the below mentioned requirements stated on all tax documents issued or accepted by him for the VAT purposes. Besides, he is also obliged to follow other requirements on documents prescribed by the special regulations (Commercial Code, Act on Accounting etc.).
When issuing the tax documents for VAT purposes, one may differ between the documents upon the deliveries or provision of service in inland and abroad.
Requirements on tax document issued by the VAT payer
Requirements on the tax document acquired by the VAT payer
The VAT payer who delivers the goods or provides the service is responsible for the issuance of the invoice, for the correctness of the quoted invoice data and for the timeliness of its issuance.
The accepted tax document from the supplier – VAT payer upon the delivery of goods or provision of service should include all requirements on the invoice according to the VAT Act. To put it differently, the data that should be quoted on the tax documents the VAT payer issues, should also be quoted on the tax documents he accepts.
In the case the VAT payer (recipient of the goods or service) claims the VAT refund on the basis of the invoice which does not meet the requirements stipulated in the VAT Act, the tax administrator is, according to the Administration of Taxes Act, allowed to call upon the VAT payer to ensure the addition of the missing data by the VAT payer who has issued the respective invoice. Under no circumstances, however, might the invoice data be changed by the recipient of the invoice who claims the VAT refund.
According to Article 51 of the VAT Act, the correctness of the quoted invoice data and completeness of the requirements on the tax document present the prerequisites to be met in order to exercise the right on input VAT refund.
The obligation to keep records for the VAT purposes
The VAT payer is obliged to keep detailed records sorted according to the taxable periods about delivered goods and provided services, received goods and services, payments accepted prior to delivery of goods or provision of service as well as payments effected prior to delivery of goods and provision of service. These records should be kept for inland, Member States and third countries separately.
The VAT payer keeps and archives these records in line with Article 70 of the VAT Act in the current wording.
Determination of the taxable period
The taxable period of the VAT payer is the month. If the VAT payer do not reach the turnover amounting to more that EUR 100000,- in the preceding 12 months, the taxable period can be the calendar quarter.
Time-limits for filing of VAT returns, recapitulative statements and the due date of the own VAT liability
The VAT payer is obliged to file the VAT return within 25 days after the end of the taxable period and within the same time-limit to settle his own VAT liability. To put it differently, the VAT return has to be filed on a monthly or quarterly basis, dependent upon the determined taxable period, more precisely, 25 days after the end of the respective calendar month or calendar year quarter. Simultaneously, he has to settle his own tax liability within the same time-limit.
The VAT return has to be filed even in the case the respective taxable period led to neither input nor output tax liability.
A recapitulative statement is filed monthly within 25 days after the end of the respective calendar month. In case the VAT payer conducts tax free delivery of goods within EU and the value thereof exceeds neither in the given year quarter nor in the preceding four year quarters EUR 100,000, the recapitulative statement might be filed on a year quarter basis, i.e. within 25 days after the end of the respective year quarter. If the VAT payer neither provided services nor delivered goods in another EU Member State, the recapitulative statement does not have to be filed that period.
All statements are filed electronically only.
Cancelation of registration
The VAT payer might apply the cancelation of VAT registration after one year as of the date when he became the VAT payer the soonest, if the turnover for the last 12 consecutive calendar months has not reached the amount of EUR 49.790,-.
The tax office will cancel the registration on the basis of a written application of the VAT payer or ex officio, if there are no reasons for the registration.
Such cancelation of registration results in expiration of obligation to charge the output VAT to the price of goods and services as of the date of cancelation of registration. Simultaneously, the legal entity or individual is not eligible for the VAT refund from the acquired goods or services anymore, nor is he allowed to issue invoices with VAT, nor expected to file a VAT return.
Obligation to file RS refers to each VAT payer who
Legal allowances
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