Value-added tax is a general tax on consumption, which the entrepreneur transfers to the consumer in the price of goods or services. The entrepreneur remits the value-added tax to the State. Entrepreneurs may deduct VAT levied from them by another entrepreneur if they have purchased the goods or services to be used in a taxable business.
Tax base
The basis for the tax paid on the sale of goods or services, or the price from which the value-added tax is calculated, is the consideration paid for the goods or services excluding tax. The consideration or price includes all surcharges. If the buyer is charged a small order surcharge or delivery expenses, for example, they are also subject to value-added tax.
Self-supply
Value-added tax must also be paid for self-supply. Self-supply refers to the transfer of goods or services from taxable business activities to the entrepreneur's private use.
Tax rates
The general VAT rate is 22 % of the price, excluding tax or other tax base.
Reduced tax rates
Reduced tax rate of 12 %. It is applied to the following goods and services:
• foodstuffs
• animal feed. |
The reduced tax rate is not applied to restaurant services, live animals, tap water, alcoholic beverages and tobacco products.
Reduced tax rate of 8 %. It is applied to the following goods and services:
• passenger transport services
• transfer of the right of use of an accommodation facility
• admissions to theatres, concerts , circus and dance performances, cinemas, exhibitions, sports events, amusement parks, zoos, museums and other comparable cultural and entertainment performances, events and facilities
• services enabling sporting activities
• medicines
• books
• barber and hairdressing services, as well as small repair services. Small repair services include bicycle, shoe, leather product, clothes and linen repairs. The amendment will remain in effect until the end of 2010. |
The VAT rates will rise by one percent on 1 July 2010. The standard rate rises to 23 %. The reduced rates are 13 % and 9 %. The VAT rate on restaurant and catering services will drop to 13 %.
