Decree of the Ministry of Finance of the Czech Republic No. 44 / 1993 Coll.
Decree of the Ministry of Finance of the Czech Republic on the exercise of the right to deduct turnover tax and import tax on stocks of materials and goods when moving to the value added tax system
Valid
Effective from 31.12.1992
44
DECLARATION
Ministry of Finance of the Czech Republic
of 22 December 1992
on the exercise of the right to deduct turnover tax and import tax on stocks of material and goods in the conversion to the value added tax system
The Ministry of Finance of the Czech Republic according to § 52 paragraph 3 of the ČNR Act No. 588 / 1992 Coll., on Value Added Tax, provides:
(1) Where a taxable person who is a payer of value added tax on 1 January 1993 (hereinafter referred to as "the payer") has stocks of material and goods (hereinafter referred to as "stocks of goods") lawfully acquired at a price including turnover tax or import tax, he may apply in the Annex to the tax return (1) for the first tax period of refund paid or entered in the accounts of turnover or import tax. The entitlement to reimbursement under this paragraph shall not apply to excise goods.
(2) For excise goods, the payer shall be entitled to a refund of turnover tax and import tax of 23% of the amount of tax paid or entered in the accounts.
(3) The condition for the application of the procedure laid down in paragraphs 1 and 2 shall be that the taxable person shall prove his entitlement to the refund of turnover tax or import tax by invoicing or other sales documents accepted from turnover tax payers, import tax declarations or proof of payment of turnover tax on intra-company use of the goods or, where applicable, of documents accepted from turnover tax non-payers, which were entered in the accounts by 22 January 1993 at the latest.
The payer shall calculate the amount of the refund of turnover tax or import tax on stocks of goods in accordance with the accounting status as at 31 December 1992 as follows:
(a) establish the volume of all purchases of goods and materials, both from debtors and non-debtors of turnover tax, transfers of goods to their own retail store and the intra-company use of goods subject to turnover tax (2) and import tax, at purchase prices including tax, with the exception of goods and materials subject to excise duty, and with the exception of goods and material subject to the zero rate of turnover tax or import tax at rates applicable on 31 December 1992, recorded between 1 July 1992 and 22 January 1993, the purchase price may be determined by a reduction of the selling price by the average trade premium of the payer claiming deduction; the calculation of this premium must be demonstrated by the payer to the Financial Office;
(b) establish, on the documents received from turnover tax payers, on the documents paid for the import tax and on the documents issued during that period, with the exception of the purchase of excise goods, the amount paid, registered or paid for the turnover tax or the import tax,
(c) determine the average tax burden as the proportion in which the figure referred to in (b) and in the denominator is the amount referred to in (a), rounded to three decimal places;
(d) make an inventory of the stock of goods on 31 December 19923) at the prices of the acquisition for which the acquisition proves the evidence referred to in Article 1 (3); excluding goods taxed at a zero rate of turnover tax or import tax and excise goods,
(e) the right to a refund of turnover tax or import tax shall be calculated as the product of the amount established under (d) and the average tax burden calculated under (c);
(f) total entitlement to refund of turnover tax or import tax shall be indicated by the payer in the annex to the tax return, on the form issued by the Ministry of Finance of the Czech Republic, for the first tax period after the law is effective, 4)
(g) the amount of the calculated right of refund of turnover tax or import tax on materials and goods shall be repaid by the payer in accordance with the procedure laid down in Section 103a of Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended by Act No. 35 / 1993 Coll.
The right to deduct turnover tax and import tax may be established by the payer in accordance with the following procedure:
(a) establish the accounting status of the stocks of goods on 31 December 1992,3) for which proof of acquisition is provided in accordance with Article 1 (3); excluding goods taxed at a zero rate of turnover tax or import tax and goods subject to excise duty at the prices of acquisitions and goods purchased from non-taxpayers; the purchase price may be determined by reducing the selling price by the average trade premium of the payer claiming the deduction; the calculation of this premium must be demonstrated by the payer to the Financial Office;
(b) the established book value of the stocks of goods shall be broken down by item of the turnover tax rates applicable on 31 December 1992;
(c) on the price of the acquisition, by applying the turnover tax rates in force on 31 December 1992, the amount of the right to deduct the turnover tax or import tax;
(d) the procedure laid down in Article 2 (f) and (g) shall apply for entitlement.
(1) The tax administrator shall reimburse the payer within 15 days of the deadline for submitting the tax return for the relevant tax period or within 15 days of the date of actual submission of the tax return for the relevant tax period, unless the payer submits the tax return in due time.
(2) For the refund of amounts pursuant to § 2 (g) or (h) the procedure for the refund of tax overpayments under the Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended by the Act No. 35 / 1993 Coll.
If the payer does not claim reimbursement of turnover tax or import tax by submitting an annex to the tax return referred to in Article 2 (f), the claim shall cease.
This decree shall take effect on the day of its publication.
Minister:
Ing. Coachman CSc. v. r.
1) § 38 of the ČNR Act No. 588 / 1992 Coll., on Value Added Tax.
2) § 3 of Decree No. 560 / 1990 Coll., implementing the Turnover Tax Act.
3) § 52 paragraph 1 (b) of the ČNR Act No. 588 / 1992 Coll. § 29 and 30 of Act No. 563 / 1991 Coll., on Accounting.
4) § 36 of ČNR Act No. 588 / 1992 Coll.
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Regulation Information
| Citation | Decree of the Ministry of Finance of the Czech Republic No. 44 / 1993 Coll., on the exercise of the right to deduct turnover tax and import tax on stocks of materials and goods when switching to the value added tax system |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.1992 |
|---|---|
| Effective from | 31.12.1992 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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