Value Added Tax Act
Extract
Purpose of Act
Article 1. This Act regulates the levy of value added tax (VAT).
Subject to Taxation
Article 2. The following shall be subject to value added tax:
1. each taxable supply of goods or services effected for consideration;
2. each intra-European Union acquisition effected for consideration, whereof the place of transaction is within the territory of the country, by a person registered under this Act or by a person in respect of which an obligation to register has arisen;
3. each intra-European Union acquisition of new means of transport effected for consideration, whereof the place of transaction is within the territory of the country;
4. each intra-European Union acquisition effected for consideration, whereof the place of transaction is within the territory of the country, of excisable goods, where the recipient is a taxable person or a non-taxable legal person which is not registered under this Act;
5. the importation of goods.
Taxable Persons
Article 3. (1) “Taxable person” shall mean any person who independently carries out an economic activity, whatever the purpose and results of that activity.
(2) Independently carried out economic activities shall comprise the activities of producers, traders and persons supplying services, including mining and agriculture, as well as the practice of a liberal profession, including as private enforcement agents and notaries. Any remunerative activity, carried out on a continuing basis or as a regular occupation or business on a professional basis for the purpose of obtaining income therefrom, including the exploitation of tangible and intangible property, shall also be considered an independently carried out economic activity.
(5) The State, the state and the local bodies shall not be taxable persons in respect of all activities and supplies in which they engage in their capacity as a central or local government authority, even where they collect fees, contributions or payments in connection with these activities or supplies.
Goods
Article 5. (1) “Goods,” within the meaning given by this Act, shall be any movable and immovable thing, including electric current, gas, water, heat or refrigeration and other such, as well as standard software.
(2) Money in circulation and foreign currency used as tender shall not be goods within the meaning given by this Act.
Supply of Goods
Article 6. (1) “Supply of goods,” within the meaning given by this Act, shall be the transfer of the right of ownership or another right in goods.
Intra-European Union Supply of Goods
Article 7. (1) “Intra-European Union supply of goods” shall be any supply of goods, transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person registered for VAT purposes in another Member State.
(2) Any supply of a new means of transport, dispatched or transported by or for the account of the supplier or of the recipient from the territory of the county to the territory of another Member State, regardless of whether the recipient is a taxable person or a non-taxable person, shall also be considered intra-European Union supply of goods.
(3) Any supply of excisable goods, dispatched or transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person which is not registered for VAT purposes in another Member State, shall also be considered intra-European Union supply of goods.
(4) The dispatch or transport of any goods produced, extracted, processed, purchased or imported into the territory of the country by a person registered under this Act within the framework of the economic activity thereof shall also be considered intra-European Union supply of goods effected for consideration, where the said goods are dispatched or transported for the purposes of the economic activity thereof by or for the account of the said person from the territory of the country to the territory of another Member State in which the said person is registered for VAT purposes.
Services
Article 8. “Services” within the meaning given by this Act, shall mean everything which has a value and which is other than goods, money in circulation and foreign currency used as legal tender.
Supply of Services
Article 9. (1) “Supply of services” shall be any performance of services.
(2) The following shall also be considered supply of services:
1. the sale or transfer of rights to intangible property;
2. the assumption of an obligation not to perform any acts or not to exercise any rights;
3. any manual and intellectual work, including treatment in the sense of production, construction or assembly of a tangible asset using raw and prime materials placed by the client at the disposal of the service provider;
4. the performance of services by a tenant/user for repair and/or improvement of an asset hired out or allocated for use.
(3) The following shall also be considered supply of services effected for consideration:
Where No Supply or Goods or Services Has Taken Place
Article 10. (1) No supply of goods or services has taken place where the supply to the transferee from the transforming corporation, from the transferor or from the contributor of a non-cash asset results from:
1. transformation of a commercial corporation according to the procedure established by Chapter Sixteen of the Commercial law;
2. transfer of an enterprise according to the procedure established by Article 15 or Article 60 of the Commerce Act ;
3. contributing a non-cash asset in consideration of a capital allotment in a commercial corporation.
(2) In the cases covered under Paragraph (1), the recipient of the goods or services shall furthermore accede to all rights and obligations under this Act and in connection with them, including the right to deduct credit for input tax and of the obligations to adjust credit for input tax used.
(3) Paragraph (2) shall furthermore apply in the cases where the goods and services have been acquired by legal or testamentary succession by a taxable person under this Act.
(4) The procedure and the requisite documents for application of Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.
Supplier and Recipient
Article 11. (1) “Supplier,” within the meaning given by this Act, shall be the person who effects the supply of goods or services.
(2) “Recipient,” within the meaning given by this Act, shall be the person who receives the goods or the services.
Taxable Supply
Article 12. (1) “Taxable supply” shall be each supply of goods or services within the meaning given by Articles 6 and 9 herein, where effected by a taxable person under this Act and whereof the place of transaction is within the territory of the country, as well as the zero-rated supplies effected by a taxable person, save in the cases in which this Act provides otherwise.
(2) A supply in which the recipient is a taxpayer under Chapter Eight herein shall not be subject to taxation by the supplier.
Intra-European Union Acquisition
Article 13. (1) “Intra-European Union acquisition” shall mean acquisition of the right of ownership of goods, as well as the actual receipt of goods in the cases under Article 6 (2) herein, which are dispatched or transported to the territory of the country from the territory of another Member State, where the supplier is a taxable person registered for VAT purposes in another Member State.
(2) The acquisition of a new means of transport, which is dispatched or transported to the territory of the country from the territory of another Member State, regardless of whether the supplier is a taxable person for VAT purposes in another Member State, shall also be considered an intra-European Union acquisition.
(3) The receipt of goods within the territory of the country by a taxable person, which will be used for the purposes of the economic activity of the said person, shall also be considered an intra-European Union acquisition for consideration where the said goods are dispatched or transported by or for the account thereof from the territory of another Member State in which the person is registered for VAT purposes and where the said goods were produced, extracted, processed, purchased, acquired or imported thereby within the framework of the economic activity thereof.
Distance Selling of Goods (distant sales of goods)
Article 14. (1) “Distance selling” (distant sales of goods) shall be a supply of goods where the following conditions are simultaneously fulfilled:
1. the goods are dispatched or transported by or for the account of the supplier from the territory of a Member State other than the Member State in which the transport ends;
2. the supplier of the goods is registered for VAT purposes in a Member State other than the Member State in which the transport ends;
3. the recipient of the supply is a person who is not obliged to charge tax upon intra-European Union acquisition of the goods in the Member State where the transport ends;
4. the goods:
(a) are not new means of transport, or
(b) are not assembled and/or installed by or for the account of the supplier, or
(c) are not subject to special arrangements for taxing the price margin for second-hand goods, works of art, collectors’ items and antiques.
(2) For the purposes of Paragraph (1), where the goods are supplied, dispatched or transported from a third country or territory and are imported by the supplier into a Member State other than the Member State in which the transport to the recipient ends, the goods shall be deemed to be dispatched or transported from the Member State of import of the goods.
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