New rules exist for VAT from 01 October

With effect from 01 October, 2013 new rules exist for VAT on goods and services that are designed to prevent tax evasion in the possibility of the so-called sensitive goods.

To effectively deal with abuses in the course of their so-called sensitive goods, the following steps have been introduced:

• Extending the catalogue of goods, in relation to the so-called taxation reverse charge mechanism;
• In certain circumstances excluding the possibility of payment for quarterly periods;
• Introduction of joint liability for tax obligations buyers sellers.

Introduced reverse change mechanism in the domestic concerns of the goods listed in Annex 11 to the VAT Act on tax on goods and services. It contains 41 items, including ferro alloys, steel and steel products (including rods, wires, flat products, powders and granules), unrefined and refined copper. The list of goods taxed domestic by the purchaser prior to the amendment included only 8 positions – mainly scrap and waste.

Entered jointly and separately liable for the obligations of the buyers tax applies to sales of goods referred to in Appendix 13 of the VAT Act, including steel products such as pipes, steel structures and components of fuel and gold. According to the provisions laid down for VAT, which delivered the goods, jointly and separately liable with the entity that conducts supplies for his tax arrears in the proportion of the tax attributable to the delivery, has been made in favour of the taxpayer.

Joint and separate liability of the buyer of the goods listed in Annex 13 to the VAT Act on tax on goods and services, will effect the rules of the General Fiscal Code, to the extent of extending the matching as a third party.

The VAT Act introduces a number of conditions and exceptions to the joint and separate liability.

If you are interested in detailed information about the above mentioned changes, please contact us.