121. rulebook on implementation of the law on value added tax

<strong>121.</strong> RULEBOOK ON IMPLEMENTATION OF THE LAW ON VALUE ADDED TAX
(1) The person referred to in Article 40 paragraph 1 of the Law who commences the conduct of a
business activity shall submit to the tax authority a request for the input tax deduction for goods
held at stock. He has to indicate separately in the request the goods on which the VAT has been
paid at supply or import, as well as on the used goods.
(2) Deduction of input VAT shall be calculated in the following manner:
1. Inventories shall be estimated at the book value (with VAT included) or at the market
value if it is lower,
2. The value of any goods for which no invoice has been received yet i.e. if the invoice shall
be received after the taxpayer registration, shall be deducted from the value of inventories of
goods,
3. The amount of input tax shall be equal to the VAT tax that would have been accounted for
if the goods had been purchased a day prior to the date of registration for payment (VAT
included).
(3) Inventories of goods referred to in paragraph 2 of this Article shall not be deemed to be the
equipment for the conduct of business activities and real estates.
(4) The taxpayer referred to in paragraph 1 of this Article may deduct the input tax contained in
stocks in proportion to executed deliveries when he cannot use that as grounds for refund of input
tax.
10. Correction of input tax deduction
Article 102
(1) Should the tax basis (payment) be subsequently changed due to various kinds of discounts or
inability of payment by virtue of Article 20 paragraph 9 of the Law, the taxpayer who has delivered
goods or rendered services may correct the VAT amount only after the input tax deduction is
corrected and a notification thereof submitted to the supplier by the taxpayer to whom the goods
have been delivered or services rendered.
(2) Corrections referred to in paragraph 1 of this Article shall be made within the tax period in
which a notification in writing is received i.e. the tax basis changed.
(3) If the input tax deduction has to be corrected on the basis of a decision passed by the customs
authority, such a correction shall be made in calculation of the VAT for the tax period in which the
decision of the tax authority has become effective.
11. Change of conditions relevant for taxation
Article 103
(1) Should the taxpayer, within the period of 5 years from the calendar year of commencement of
equipment utilization, make a transition from the taxable business activity to exempted business
activity and vice versa (change of conditions on the basis of which he was or was not entitled to
the input tax deduction for that equipment), the VAT tax shall be changed for the period after such
a change. When it concerns real estates, instead of the 5-year period, the period of 20 years shall
be applied.
(2) The commencement of equipment or real estate utilization (hereinafter: capital assets) shall
mean the tax period in which the input tax has or has not been deducted.
Rulebook on Implementation of the Value Added Tax Law
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