Act No. 208 / 1997 Coll.
Act amending and supplementing the Act of the Czech National Council No. 588 / 1992 Coll., on Value Added Tax, as amended
Valid
Law
Effective from 01.01.1998
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208
THE LAW
of 31 July 1997
amending and supplementing the Act of the Czech National Council No. 588 / 1992 Coll., on Value Added Tax, as amended
Parliament has decided on this law of the Czech Republic:
Act No. 588 / 1992 Coll., on Value Added Tax, as amended by Act No. 196 / 1993 Coll., Act No. 321 / 1993 Coll., Act No. 42 / 1994 Coll., Act No. 136 / 1994 Coll., Act No. 258 / 1994 Coll., Act No. 133 / 1995 Coll. and Act No. 151 / 1997 Coll., is amended as follows:
Article 1 (2) (1) reads as follows:
"(1) For the purposes of this Act, taxable transactions are:
(a) the supply of goods and the transfer of immovable property in which the ownership or management right is changed;
(b) provision of services
1), even if it is an activity showing all the characteristics of the business, except that it is carried out by an entrepreneur, unless otherwise provided by law. ';
2. Paragraph 2 (2) and (3), including Notes (1a), (1b), (1c), (1d) and (1e), shall be deleted.
3. in Article 2, paragraph 4 (a) and (b) shall read as follows:
'(a) goods of movable, thermal and electrical energy, gas and water; money and securities shall not be considered as goods unless otherwise provided for in this law;
(b) services all activities which are not the supply of goods or the transfer of real estate and the transfer or use of rights; ';
4. In Article 2, paragraph 4 (l), the following words are added at the end: "unless otherwise provided by law, '.
5. In Paragraph 2, paragraph 4 (o), the words "or, where appropriate, for the intragroup consumption of the taxable person 'are replaced by the words" unless otherwise provided for in this law'.
6. In Article 2, paragraph 4, at the end of point (t), the dot is replaced by a comma and the following points (u), (v), (w) and (x) are added:
"(u) by mail, the sale of goods by which the seller sends the goods to the buyer for delivery, with the exception of the sale under the sales contract under the Commercial Code,
(v) import of goods entering the domestic territory;
(w) export of goods exit from the country,
(x) the main activities of entities which are not set up or set up for business purposes, the activities to which they have been set up or set up. ";
7. Paragraph 2 (4) becomes paragraph 2.
8. in Article 2a (2) (b), the word "exchange" shall be inserted after the word "under" and the word "centre" shall be deleted;
9. In Paragraph 2a (2), the dot at the end of point (b) is replaced by a comma and the following point (c) is added:
"(c) materialised securities at the time of delivery by the manufacturer to the issuer or on importation by the issuer."
10. in the last sentence of Article 5 (2), the words "in the case referred to in paragraph 4," shall be replaced by "registered."
11. in the first sentence of Article 5 (5), the words "purchased or inserted" are replaced by the words "purchased" and the words "purchased or inserted" are replaced by the words "purchased."
12. in Article 5, the following paragraph 6 is inserted after paragraph 5, including footnote 3e:
"(6) If the registration is cancelled as a result of the death of the payer, his successor shall be liable for the tax referred to in paragraph 5. This shall not apply if the person authorised under the special rule 3e) continues to do business after the deceased and is a tax payer or submits an application for registration of the payer within 20 days of the date of death of the payer. The tax administrator shall register the person on the date following the date of death of the payer. Similarly, in the event of the death of a payer operating under § 2 (2) (c) and (d) of the Commercial Code.
3e) § 13 (1) (a) to (c) of Act No. 455 / 1991 Coll., on Business Business (Trade Act), as amended. '
13.
"(6) Where a taxable person becomes a payer, he shall be entitled to claim the deduction of property tax on the residual price of tangible and intangible property acquired, established under the special rule (3b) and the price of stocks purchased, established under the special rule (3c) on the effective date indicated on the registration certificate. The deduction may be applied only to property acquired not later than 12 months before the date of application of the registration certificate. The deduction cannot be applied to a passenger car and refundable bottles where they are subject to a deduction ban pursuant to Paragraph 19 (4). The condition for the application of the deduction shall be the tax documents and, where applicable, documents issued by the payer containing the price, including the tax. The entitlement shall be applied in the tax return for the first tax period after the effective date indicated on the registration certificate and the amount of the tax shall be calculated in the manner set out in Paragraph 17 (3). The provisions of this paragraph shall not apply to assets, including stocks, acquired by their own activities. ';
14. Article 5 (9) shall read as follows:
"(9) The debtors referred to in paragraphs 6, 8 and 9 may apply for cancellation of the registration not earlier than three months after the date on which they became debtors pursuant to paragraph 6, 8 or 9, provided that their turnover does not exceed CZK 750 000 for those three months. When the registration is revoked, the payers shall be liable for the tax referred to in paragraph 5. ';
15. In Article 5, paragraphs 6 to 9 shall become paragraphs 7 to 10.
16.
Persons having a special relationship with the payer
(1) For the purposes of this Act, persons having a special relationship with the payer shall be regarded as:
(a) persons who are economically or HR-related to the payer;
(b) persons who are in employment law (4) or any other analogous relationship with the payer;
(c) persons who deal with the payer jointly under a grouping contract (3) or other similar contracts.
(2) Economic or personal persons shall be understood as being involved, directly or indirectly, in the management, control or property of the other person, or in the management, control or property of the same legal or natural person, directly or indirectly, in the management, control or property of both persons or natural persons close to them. 5) Participation in control or capital shall mean the ownership of more than 25% of the shares in the capital or voting rights.
4) § 27 et seq. of the Labour Code.
5) § 116 of the Civil Code. '.
17. in Article 7 (1), the word "in kind" shall be replaced by the word "non-monetary."
18. in Article 7 (2) (e), at the end of the period, the following point (f) shall be replaced by a comma:
"(f) activities carried out by bodies in the framework of their main activity which are not set up or set up for business purposes.";
19. Article 7 (3) reads as follows:
"(3) The transfer of an asset in a non-monetary form shall be considered to be a taxable transaction only if it is entered into a non-payer legal person where the depositor, when the property is acquired, has applied the deduction of the tax or, where appropriate, the deduction of the turnover tax or of the import tax or has been acquired without or without the turnover tax. ';
20. Article 7 (4) and (5) shall be added, including Notes (5a), (5b), (5c), (5d), (5e) and (5f):
"(4) Issue of a settlement interest (5a) in a non-monetary form or a share in a liquidation balances (5b) in a non-monetary form shall be considered to be a taxable transaction only if the deduction has been applied to it or was obtained without tax or turnover tax.
(5) The taxable supply is not:
(a) transfer of land;
(b) the issue or provision of assets in non-cash form as compensation under Act No. 229 / 1991 Coll., as amended, or under Act No. 42 / 1992 Coll., as amended,
c) free of charge provision of advertising and promotional items, the entry price of which does not exceed CZK 200 excluding goods subject to excise duty,
(d) the sale and lease of assets which are not part of the business of the payer;
(e) the sale of a passenger car, the acquisition of which has not claimed the right to deduct pursuant to Paragraph 19 (4), if the sale price does not exceed the entry price, including the tax;
(f) the sale of a passenger car in the form of a financial lease, followed by the purchase of a hired item, where the sale price does not exceed the entry price, including the tax on the owner from whom the passenger car was purchased;
(g) the sale of a passenger car from a person for whom its sale was not a taxable transaction and the sale of a passenger car by a tax payer who acquired it before the registration date referred to in Article 5, unless the sale price exceeds the entry price,
(h) the sale of refundable bottles, the purchase of which does not qualify for deduction pursuant to Article 19 (4);
(i) the free payment of taxable transactions on whose acquisition the right to deduct pursuant to Paragraph 19 (3) has not been exercised;
(j) a free transfer of ownership of a movable item carried out when the loan is granted by the bank and takes place between the entity to which the loan was granted and that bank; a free transfer of ownership of the same movable item between the bank and the entity to which the loan was granted is also assessed after repayment of the loan,
(k) borrowing 5d) movable goods provided by the bank to the borrower in connection with the transfer of ownership under (j);
(l) transfer of the business share, 5e) transfer of membership of the cooperative, 5f)
(m) transfer of the claim, unless otherwise provided by law.
(5a) Sections 61 and 233 of the Commercial Code.
5b) Sections 61 and 259 of the Commercial Code.
5c) § 29 of ČNR Act No. 586 / 1992 Coll., as amended.
5d) § 659 of Civil Code.
5e) § 114 et seq. of the Commercial Code.
5f) § 227 et seq.
21. in Paragraph 9 (1) (b), "settlement" is replaced by "settlement."
22. in Article 9 (1) (c), the words "when goods are sold by mail order 6a)" shall be replaced by "when goods are sold by mail order."
23. in Article 9 (1) (e), the following shall be inserted after the words "the date on which they are provided or paid": "or the issue of a tax document."
24. in Article 9 (1) (f), the words "or parts thereof" and the words "in the case of a gradual transfer and use of rights, on the date stated in the contract," shall be inserted after the words "work";
25. Paragraph 9 (1) (i) reads as follows:
"(i) in the case of the transfer or use of rights on the date specified in the contract involving the transfer or use of rights."
26. In the third sentence of Article 9 (3), the words "with the exception of partial transactions made under a work contract 'shall be deleted and the following sentence shall be inserted after the third sentence:" Even in the case of partial transactions carried out under a work contract, the payer may consider taxable transactions to be effected on the date referred to in paragraph 1 (f).'.
27. in Article 12 (2) (a), the following shall be inserted after the words "business name, registered office": "or place of business."
28. in Article 12 (2) (c), the following shall be inserted after the words "business name, registered office": "or place of business."
29. Paragraph 12 (2) (j) reads as follows:
"(j) the basic or reduced rate of tax or, where applicable, the disclosure that it is a taxable supply exempt from the obligation to apply the output tax pursuant to § 46 or § 47,"
30.
"(i) the basic or reduced rate of tax or, where applicable, the indication that it is taxable transactions exempt from the obligation to apply the output tax pursuant to § 46 or § 47,"
31. in the first sentence of Article 12 (9), the words "by credit card or check" shall be inserted after the words "after the end" and the last two sentences shall be deleted.
32. Paragraph 12 (10) reads as follows:
"(10) A payer who buys and sells services intended for the completion of tourism services shall not be obliged to issue a tax document in the event of transactions for another payer who does not wish to claim a deduction. In that case, it shall issue a document showing the information referred to in paragraph 2 (a), (b), (e), (h), (j) and the commercial name of the payer for whom the taxable transaction is carried out, the price including the tax and the notification that the quoted price contains the tax. This document shall be issued by the payer at the earliest on the date on which the taxable supply takes place and no later than 15 days after that date. However, where the payer for whom taxable transactions are carried out requires a tax document to be issued, the payer who provides such transactions shall be obliged to issue the tax document. '
33. In the first sentence of Paragraph 14 (9), the words "gold in alloys or coins' are replaced by the words" world-class gold, gold coins'.
Article 34 (14) (14) reads as follows:
"(14) The basis of the tax on the supply of second-hand goods purchased from persons who are not payers for resale in the unaltered state shall be the premium to the purchase price established as the difference between the selling price including the tax and the purchase price at which it was purchased from the person who is not the payer. The correction and technical evaluation shall not be considered as a change of status. The tax shall be calculated in accordance with Paragraph 17 (3). If this difference is negative, the tax base is zero. This procedure shall also apply:
(a) on delivery of used passenger cars purchased from payers for resale in the unaltered state;
(b) in cases where the payer sells a passenger car for which he has not claimed the right to deduct pursuant to Paragraph 19 (4), at a price higher than the entry price, 5c)
(c) in the case of the sale of a passenger car acquired in the form of a financial lease with the subsequent purchase of a hired item, where the sale price exceeds the entry price, including the tax on the owner from whom it was acquired, and in the case of the sale of a passenger car purchased from a person who is not a payer, where the sale price exceeds the entry price. "
35. in the first sentence of Paragraph 14 (16), the following words are added after the word "tax": "on the output."
36.
Correction of the tax base
(1) The payer may correct the tax base and the amount of tax
(a) on cancellation or repayment of all or part of the taxable supply;
(b) where the price is reduced on the basis of a change in quality, delivery and other conditions agreed for taxable transactions;
(c) in the event of a change in the price ratio for each performance provided under the negotiated price for taxable transactions carried out in the context of the completion of tourism services, the change resulting in a reduction of the tax liability.
(2) The payer is obliged to correct the tax base and the amount of tax
(a) where price increases are made on the basis of changes in quality, delivery and other conditions agreed for taxable transactions;
(b) in the event of a change in the price ratio for each performance provided in the negotiated price for taxable transactions carried out in the context of the completion of tourism services, the change resulting in an increase in tax liability.
(3) The difference between the original and the corrected taxable base is considered to be a separate taxable transaction which is subject to tax during the tax period in which the tax base has been corrected in accordance with paragraphs 1 and 2.
(4) The adjustment of the tax base and the amount of the tax referred to in paragraphs 1 to 3 shall be carried out by the payer by issuing a tax credit or a copy pursuant to Paragraph 13 or, in the case of a correction referred to in paragraph 1 (c) and paragraph 2 (b), a document bearing the particulars of the proof of use referred to in Article 12 (5), with the exception of points (c) and (g), and containing the reason for the correction.
(5) The provisions of paragraphs 1 to 4 shall apply only to a payer who was a payer at the time of the tax liability for the original transaction. ';
37. in Article 15a (2) (c), the following words shall be added after the word "taxes": "rounded up to ten pennies, possibly in pennies."
38. In Paragraph 15a (2), the following sentence is added at the end: "A corrective tax document may not be issued after three years from the end of the tax period when taxable transactions have taken place '.
39. in Article 16 (1), the following shall be inserted after the words "heat energy": "which is to be classified under tariff subheadings by means of means."
40. In Paragraph 16 (6), the words "transfer and use of rights shall be subject to a reduced rate; u 'shall be deleted.
Article 41 (17) (4) shall be deleted.
Paragraphs 5 to 7 shall be renumbered paragraphs 4 to 6.
Article 19 (1) reads as follows:
"(1) The right to deduct shall be exercised by the payer if the taxable transactions received by him by another payer are used to obtain turnover for their taxable transactions, or to obtain income or income for transactions which are not taxable, unless otherwise provided by this Law. ';
43.
"(2) The payer shall demonstrate the right to deduct the tax by means of a tax document recorded in accordance with a special provision, 16a), where applicable, registered in accordance with Paragraph 11 for payers who are not an entity which has all the statutory requirements and which has been issued by the payer. In the event that the document does not contain all the particulars of the tax document, the payer shall provide proof of entitlement under a special rule. 16d) The right to deduct may be applied first in the tax return for the tax period in which taxable transactions took place. The right to deduct may not be exercised after three years from the end of the tax period in which taxable transactions were carried out, unless otherwise provided by the law.
16a) § 3 (1) of Act No. 563 / 1991 Coll.
16d) § 31 of ČNR Act No. 337 / 1992 Coll., as amended. '
44. Article 19 (7) and (8) read:
"(7) When using a professional passenger car for personal use, the payer shall not be entitled to deduct the tax on fuel intended for personal use. If he has already claimed the right to deduct on these fuels, he shall issue proof of use and apply the tax on the output.
(8) The payer shall not be entitled to deduct from the tax on taxable transactions used to obtain income or income from the lease of the property or part of it, including an apartment which is not part of the payer's business assets, as well as from all taxable transactions received which are not business-related and commercial property-related. The exclusion of the right to deduct must in this case be made before any adjustment to the deduction provided for in Paragraph 20. '
45. Paragraph 20 (1) reads as follows:
"(1) If the payer has income or income not only for his taxable transactions in respect of which he is entitled to deduct, but also for taxable transactions exempt under Paragraph 25, for which he is not entitled to deduct, he shall be obliged to shorten the right to deduct, unless otherwise provided by the law. The proportion of the deduction shall be determined as the product of the total input tax for the relevant tax period and coefficient. The coefficient shall be determined as the proportion in which the numerator is the sum of the non-taxable price for the taxable transactions in respect of which the right to deduction arises and the denominator shall be the total of the non-taxable price for all taxable transactions in respect of which the right to deduction and taxable transactions exempt under Article 25 of the Act, with the exception of exempt taxable transactions referred to in paragraph 2. The coefficient calculated shall be rounded to four decimal places. If the sum of the taxable transactions exempted pursuant to Paragraph 25, with the exception of exempt taxable transactions referred to in paragraph 2, is positive and the total of the non-taxable prices for all taxable transactions with a right to deduct is zero or negative, then the coefficient shall be zero. ';
46. In Article 20 (2), the following is inserted after the words "not to be counted": "the price net of tax on the transfer of securities which is exempt under Paragraph 28 (2) (b)," and the following sentence is added at the end: "The sum of the denominator of the coefficient shall not include income or income for transactions which are not taxable."
47. in Paragraph 20 (3), the words "including membership contributions" shall be inserted after the word "contributions" and the words "revenue from the main activity" shall be deleted.
48. In Article 20 (6), the words "the sum of the deductions claimed for the individual tax period of the year and the calculated deduction entitlement for the whole year 'are replaced by the words" the calculated deduction entitlement for the whole year and the sum of the deductions claimed for the individual tax period of the year' and in the last sentence the following words are inserted after the words "from 1 January ':" the previous year'.
49. In Paragraph 20 (6), the following sentence is added at the end: "Settlement shall not take place in cases where the payer or the successor in title is not obliged to pay the tax pursuant to § 5 (6) and (9)."
50. Paragraph 20 (7) reads as follows:
"(7) The settlement correction shall be made by the payer when the taxable transactions are corrected for the tax period of the three preceding calendar years. When calculating settlement corrections, it shall always apply the newly calculated annual coefficient with the projection of all corrections relating to the corrected year and shall make that settlement correction for the corrected tax period. For other years, it shall apply the last calculated coefficient of the year to which the correction relates. ';
51. In Paragraph 25, the following paragraph 2 is inserted after paragraph 1:
"(2) Taxable transactions carried out by entities which are not set up or set up for business purposes in the context of the main activity (§ 35a) shall be exempt. '
Paragraph 2 shall become paragraph 3.
52. Paragraph 25 of the newly marked paragraph 3 reads as follows:
"(3) Where the payer has income and income for taxable transactions exempt under this paragraph, he shall not be entitled to deduct input tax for such transactions unless otherwise provided for in this Law. ';
53. Paragraph 28 (2) (b), including footnote 22a, reads as follows:
"(b) the transfer of securities, except for the transfer made by a securities dealer under a special regulation, 22a)
22a) § 45 et seq. of Act No. 591 / 1992 Coll., on Securities, as amended. '
54. in Article 28 (2) (h) (3), the following words shall be added after the word "papers": "except for the transfer of securities referred to in (b)."
55. Paragraph 28 (4) (d) reads as follows:
"(d) securities dealers,"
56. In Paragraph 28 (5), "10% 'is replaced by" 20%' and "or the amount of CZK 10 000 000 'is deleted.
57. The following sentences are added at the end of Paragraph 32 (2): "The supply of human blood and its components to direct clinical use, human organs and breast milk shall be exempt. The supply of dental products by dental laboratories, including the repair of these goods, classified under special Regulation (13), to class SKP 33.10.92 (repair and maintenance of medical and surgical equipment), shall also be exempt. ';
58. after Paragraph 35, the following Section 35a is inserted:
Taxable transactions carried out in the context of the main activity by entities not established or set up for business purposes
Taxable transactions carried out in the main activity by entities which are not set up or set up for business purposes shall be exempt from tax. No tax exemption shall be granted to the State Fund for Market Regulation in agriculture (39a) the sale of agricultural and food products and to the State Material Reserve Administration (39b) the sale of State tangible reserves.
39a) Act No. 472 / 1992 Coll.
39b) Act No. 97 / 1993 Coll., on the Jurisdiction of the Administration of State Material Reserves. '.
59. In the second sentence of Paragraph 36 (2), the following words are inserted after the word "payer": "whose turnover in the previous calendar year exceeded CZK 2 000 000,"
60. Paragraph 37, including Notes 40) and 40b) reads as follows:
Tax return and maturity
The payer is obliged to submit a tax return within 25 days of the end of the tax period, 40) even if he has not incurred tax. The own tax is due within the time limit for filing the tax return, with the exception of the tax on imported goods pursuant to § 43, for which the tax is provided for by a special regulation, 40b) and the tax on occasional domestic bus services due within the period laid down in § 48.
40) § 40 (2) of the ČNR Act No. 337 / 1992 Coll., as amended.
40b) Act No. 13 / 1993 Coll., as amended. '
61. § 38 is being released.
62. In Paragraph 38a (1), the last sentence is deleted.
Article 63 (38a) (2) reads as follows:
"(2) The additional tax return shall be submitted to the payer if the total of the corrections increases the tax liability. '.
64. Paragraph 38a (3), including footnote 40c, reads:
"(3) Where the payer reduces the tax liability by summarising the corrections, he may submit an additional tax return within the time limit laid down by the special regulation. (40c)
40c) § 47 (1) of Act No. 337 / 1992 Coll., as amended. '
(65) In Paragraph 38a (4), the second sentence is replaced by the following: "In the case of the correction of taxable transactions made for the tax period of the year already settled, the newly calculated annual coefficient shall be used to correct the deduction, with the projection of all corrections for the year in question. At the same time as the correction submitted, the payer is obliged to correct the right to deduct pursuant to Paragraph 20 (7) and submit in one additional tax return. The settlement correction shall be measured for the corrected tax period. ';
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Regulation Information
| Citation | Act No. 208 / 1997 Coll., amending and supplementing the Act of the Czech National Council No. 588 / 1992 Coll., on Value Added Tax, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 03.09.1997 |
|---|---|
| Effective from | 01.01.1998 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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