SUPERCEDED

XV.   Value Added Tax

Taxpayers are required to register for VAT if their turnover exceeds stipulated amounts.

Rates are divided into the "basic rate" (mainly for goods) and the "lower rate" (mainly services). Exempt are e.g. postal, financial and insurance services, transfer and lease of land and buildings or structures (under certain conditions), radio and television broadcasting, lotteries, education, social and health care services, and sales of business to a VAT payer.

VAT is payable on imported goods, non-scheduled international bus services from abroad and taxable domestic goods and services, transfer/usage of rights, etc.

The tax return must be submitted and the tax is due within 25 days after the end of the tax period. Any excess tax deduction is refunded within 30 days of assessment of the excess deduction.

The ability to reclaim VAT is limited if VAT exempt sales exceed given limits.

On existing items, VAT is reclaimable/payable on registering/deregistering for VAT.

Low value promotional gifts  (unless they are subject to excise tax).

Re-invoicing of "exempt" supplies is exempted from VAT in some cases.

Services undertaken under a "Power of Attorney (Mandate) " are subject to VAT at the same rate as the owner of the good or service is subject to.

VAT on rent of real property can only be charged if the lessee is a VAT payer and uses the real property for running their business. When VAT is charged on rent of real property, the Tax Office must be notified within 30 days after signing the lease agreement; it is not required to inform the tax office if VAT is no longer charged.

If there is insufficient information on a VAT document, the recipient may be required, by the tax office, to go back to the issuer and have the document corrected.

VAT reclaims are limited to inputs "supplied" in the current and prior year.

Management of investment funds are exempt from VAT.

Penalties are to be calculated from the due date of the return adjusted by any refund claims.

Not-for-profit organizations may have their VAT registration canceled by the VAT office if their VAT turnover is below stipulated amounts.

International transport includes transport between bonded warehouses.

If customs correct a VAT assessment the VAT claim may be adjusted in the VAT return.