a foreign entity, which makes distance sales of goods to individuals for personal consumption, and these goods are subject to excise duties an entity that is not registered for VAT purposes, but acquires goods from another EU Member State at a value exceeding EUR 13,941.45 in a calendar year.
Voluntary registration is also possible; a request for VAT registration should be filed with the tax authorities.
VAT grouping for group companies is allowed with effect from 1 January 2010 if certain conditions are met.
De-registration for VAT can be applied for as a result of the following situations:
a taxpayer who has ceased to perform economic activities that are subject to VAT a taxpayer whose taxable turnover did not reach 49,790 in the last twelve calendar months a foreign entity making distance sales if the total value of the supplied goods did not reach EUR 35,000 in the relevant calendar year and also did not reach EUR 35,000 in the previous calendar year an entity, registered for the acquisition of goods from another EU Member State, which did not acquire goods from another EU Member State at a total value of EUR 13,941.45 in the relevant calendar year and also did not reach that threshold in the previous calendar year.
The standard VAT rate is 19%. A 10% reduced VAT rate has been introduced for medicaments and certain other medical/pharmaceutical products, books and music records (if certain conditions are met) and a new reduced 6% VAT rate has been introduced effective from 1 May 2010 which applies to sale of a limited range of meat and other agricultural products by small independent producers.
A taxpayer is entitled to deduct VAT from transactions used by the taxpayer for the supply of goods and services as a VAT payer. In general, the taxpayer can recover the VAT provided that:
a VAT liability arose to the supplier from the supply of goods or services, in the case of import of goods the import VAT was paid the taxpayer has a valid VAT document (invoice).