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The transfer or discontinuance of business, totally or partially, must be declared to the Tax Authorities within 30 days:

  • in case of a transfer or sale of business, following the day where the sale or transfer would have been published;

  • in case of sale or transfer of other enterprises, following the day when the transferor or buyer would have effectively started managing the operations; and

  • in case of discontinuance of business, following the day of the definitive closing down.

Output tax

Advertising and prices

The prices are always given inclusive of all taxes.

Calculation of output tax

The calculation of output tax depends on the VAT rate. Where the standard rate applies, the output tax is determined as follows:

18% x price (all taxes included) = VAT

The taxable amount consists of all the sums, values or services received in compensation for the operation, including subsidies, like all the expenses, taxes and deductions of any nature other than the VAT itself.

Exemptions and zero-rating

Exempt supplies

Exempt operations include, but are not limited to:

  • agricultural, farming and fishing




  • importation of new materials and tools intended exclusively for the development of vacant properties in urban zones and for the construction by public and private promoters of socio-economic residences duly authorised;

  • sale of quarry products;

  • operations realised by insurance companies in the context of their activity linked to insurance and reinsurance contracts, as well as services rendered by insurance middlemen;

  • transfer of intangible movable goods and immovable goods that support registration duties;

  • renting of undeveloped land and unfurnished premises;

  • printing, import and sale of newspapers and reviews, except for advertisement profits;

  • operations relating to fiscal stamps;

  • sums paid by the state to the Central Bank;

  • welfare, education, competitive, cultural, religious or philanthropic supplies made by nonprofit institutions to their members unless operating in a competitive sector;

  • first necessity products such as bread, sugar, rice, eggs, academic books and milk;

  • imports of products that are exempt under the Customs Code;

  • secondhand products;

  • import of products by mining companies for the performance of mining operations; and

  • agricultural and breeding devices and tourism equipment (except forestry and fish sectors).

Zero-rated supplies The zero-rated supplies include:

  • international exports and transport; and

  • exports subject to a customs duty declaration.

Input tax

Input tax allowed

Input VAT incurred to perform taxable operations is deductible from output VAT collected. The right to a deduction arises when the tax point occurs. To meet the formal deduction conditions, VAT has to be mentioned on one of the following documents:

  • invoices delivered by suppliers legally authorised to mention it;

  • documents of importation; or

  • declarations completed by the debtor in the event of self-supply.

Specific input tax deduction exclusion

VAT incurred is denied as an input tax deduction in the following instances:

  • entertainment, accommodation and catering, except where a company’s taxable activity consists of these operations;

  • import of goods that are re- exported without any modification;

  • goods given free or at a price less than the value of the goods;

  • petroleum products, except for those used by a fixed device as combustible or as a manufacturing element in industrial companies;

  • vehicles used, mainly or partially, for the transport of passengers and constituting fixed assets, except:

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