The Value Added Tax Act is a form of consumption taxation that was first introduced in 1958 in France and is now applied in more than 170 countries around the world.

Value added tax (hereinafter referred to as VAT) is a modern form of consumption taxation. It belongs to indirect forms of taxation whose main characteristic is the “passability” of the tax, which is indirectly transferred from the taxpayer’s burden, through the consumption of goods and services, to the person (end consumer) in such a way that the tax liability is included in the price.

Who is a TAX PAYER? – Any person who independently performs any economic activity, regardless of the purpose and result of performing that activity.

When are the conditions for entering the VAT system met?

• In the current year, if / when the value of deliveries without VAT exceeds the threshold of €40,000.00
• The P-VAT form must be submitted by the 15th of the month following the month in which the threshold was crossed
• Voluntary entry / can also be entered during the year – on the day of submission of the request – the necessity to stay in the system for 3 years
• A quarterly taxpayer can be an entrepreneur whose value of delivered goods and services, including VAT, in the previous period (year 2023) is less than €110,000.00 (* not if he has transactions with the EU – then he is considered a monthly VAT taxpayer)

What is subject to VAT taxation?

• Delivery of goods in the country for a fee
• Providing services in the country for a fee
• Acquisition of goods within the EU for a fee
• Import of goods

What constitutes the tax base?

• delivery of goods / services in the country
• compensation that the supplier has received / should receive from the customer or some other person for these deliveries
• Acquisition of goods – the purchase price of these or similar goods, or if this price is unknown, the amount of costs determined at the time of delivery
• import – customs value determined according to customs regulations