The 2012 worldwide VAT, GST and sales tax guide

B ELARUS 55
A taxpayer must confirm the method of revenue recognition in its
accounting policy. The accounting policy is a document adopted
by a company for each year that describes methods (that do not
contradict local law) applied by a company to carry out accounting
under Belarusian generally accepted accounting principles
(GAAP). Accounting policy must comply with local law requirements,
but it may differ from company to company in certain
elements.
Imported goods. Imported goods are subject to import VAT in
Belarus.
For goods imported from countries that are not members of the
Customs Union, VAT is collected by the customs authorities. For
goods imported from countries that are members of the Customs
Union, VAT is collected by the tax authorities. VAT on imports is
payable on the customs value of goods, including import duty and
excise duty if applicable.
VAT on purchases of goods (works and services) from foreign legal
entities. Belarusian legal entities and individual entrepreneurs
that acquire goods (works and services) from foreign legal entities
must calculate and pay VAT to the budget if the foreign legal
entities do not have a permanent establishment in Belarus.
Subsequently, Belarusian legal entities or individual entrepreneurs
may deduct the amount of paid VAT.
G. Recovery of VAT by taxpayers
A taxpayer may recover input VAT, which is VAT charged on
goods (works and services) and property rights supplied for carrying
out activities within the scope of VAT. A taxpayer generally
recovers input VAT by deducting it from output VAT, which is
VAT charged on supplies made.
The following amounts of input VAT may be deducted:
• VAT presented for payment by sellers (except foreign legal entities
that do not have a permanent establishment in Belarus) to
buyers with purchased goods
• VAT paid on imported goods
• VAT paid on goods (works and services) and property rights
purchased from foreign legal entities that do not have a permanent
establishment in Belarus
Nondeductible input tax. Amounts of input VAT cannot be recovered
in the following circumstances:
• They were deducted as expenses for corporate profits tax purposes.
• They were allocated to the value of goods (works and services)
and property rights (including fixed and intangible assets).
• They were involved in certain other cases.
Partial exemption. If a taxpayer engages in both exempt and taxable
activities, it may account for input VAT related to each activity
separately. In this case, input VAT directly related to taxable
activities is recoverable in accordance with the sequence of VAT
deductions, and input VAT directly related to exempt activities is
not recoverable and must be expensed for corporate profit tax
purposes. If the taxpayer does not keep separate accounts of input
VAT attributable to taxable and exempt activities, it must be