Decree of the Ministry of Finance No. 95 / 1967 Coll.
Decree of the Ministry of Finance implementing Act No. 73 / 1952 Coll., on Turnover Tax
Valid
Effective from 01.01.1968
95
DECLARATION
Ministry of Finance
of 16 August 1967
implementing Act No. 73 / 1952 Coll., on turnover tax
Preliminary provisions
Turnover tax
The Ministry of Finance provides, pursuant to § 3 paragraphs 3 and 4, § 6 and 7, § 12 paragraph 3, § 18 and 19 of Act No. 73 / 1952 Coll., on turnover tax:
K § 2
Who pays tax
(1) Turnover tax is levied by state economic organisations, folk cooperatives (including single agricultural cooperatives), cooperative undertakings and social organisations (hereinafter referred to as "undertakings").
(2) Exceptionally, certain budgetary and other state organisations also pay turnover tax, if provided for by the Ministry of Finance.
K § 3
What is subject to tax
(1) Dani is subject to turnover from the sale of its own production or purchase. The sale of goods means the disposal of goods, whether or not the exchange of goods for other goods or the execution of goods and the provision of goods in kind.
(2) The sale of goods is also the case where the undertaking invokes:
(a) goods of its own manufacture or own purchase which it has incorporated into a product made of the client's material;
(b) repair or other performance in which the goods were incorporated in their own production or purchase;
(c) goods of own manufacture or own purchase incorporated in their case, provided that the price of such incorporated goods is borne by another body.
(3) Transfers of national property management outside normal management under the rules on the management of national property *) are not subject to turnover tax.
(4) The sales of the same goods shall be subject to tax only once. The turnover tax shall not be levied on the sales of those goods which the undertaking has lawfully purchased at a turnover tax price or on which the tax has been paid in respect of the internal use of the goods.
(5) God's own production means:
(a) products obtained by the undertaking by its own primary production (mining), processing, processing (also by the training of wine) or processing;
(b) products which an undertaking otherwise produces from its own materials at its premises or which it has obtained from its own materials elsewhere;
(c) residues resulting from the working, processing or other manufacturing of own materials;
(d) products already in use or worn, which are renewed by the undertaking, adapted or otherwise put into an improved state;
(e) products obtained by the undertaking by dividing the whole into individual components, such as disassembly of machinery, apparatus, other equipment, dismantling of a building or construction;
(f) products resulting from construction work.
(6) God's own purchases are products purchased at prices excluding turnover tax.
(7) The intra-corporate use of goods of own production or of own purchase shall be subject to a turnover tax or a countervailing duty where the undertaking has used them for its own use for purposes for which it is not entitled to purchase these goods at prices excluding turnover tax, in accordance with the provisions of the Turnover Tax Tariff or this Decree or the special arrangements. The use of goods for own use means the use which an undertaking is obliged to account under the accounting rules in the context of sales and revenues or to charge costs.
(8) Similarly, as in-house use of goods, the tax on turnover compensation is subject to compensation to socialist organisations due to loss of goods, exceeding the loss standard, manka, defects of goods, destruction, damage and theft, with the exception of refunds and fines levied under packaging regulations. The turnover tax shall not be levied if the staff member replaces the damage caused by the bastards.
(9) Only transfers between establishments, establishments (guilds), establishments or other units of the same undertaking shall not be considered as in-house use of goods subject to turnover tax unless it is a transfer to its own retail store.
(10) Donations made by a socialist organisation shall be treated in a similar manner to the internal use of goods subject to turnover tax, regardless of the method of accounting for the gift. The internal use of goods subject to turnover tax shall not be subject to the obligation of the Socialist organisation to deliver the goods free of charge under the relevant rules.
(11) The intra-company use of goods shall not be subject to turnover tax if the product has been lawfully manufactured from material purchased at prices with turnover tax; where the product was partly made up of materials purchased at prices net of turnover tax, the undertaking shall pay turnover tax on non-taxed material, provided that the intra-company use of the goods is subject to the payment of turnover tax referred to in paragraph 7.
K § 4
Taxable turnover
(1) The taxable turnover is the selling price of the goods.
(2) Goods are sold in principle at prices with turnover tax.
(3) Goods shall be sold at prices net of turnover tax, provided that the turnover tax scale is set.
(4) Products intended for lending to the population are purchased by socialist organisations at prices with turnover tax irrespective of the provisions of the turnover tax tariff.
(5) The taxable turnover arises:
(a) on sale of the goods on the date on which the invoice or other proof of sale was drawn up;
(b) for investments made under its own control on the date of completion of the internal invoice;
(c) for small and short-term items acquired under their own control on the date of transfer to the warehouse;
(d) in the event of compensation on the date on which the claim for compensation was claimed;
(e) when the loss-making standard for alcohol, alcohol products, distillates, wines and other similar products (lucerne, medicines, etc.) is exceeded,
(f) on the date on which the transfer took place in the context of sales and revenues or the burden of costs in the course of the internal use of the goods;
(g) when donating the date of the transfer of ownership to the donated item.
K § 6
Determination of tax
The turnover tax shall be determined at the rates shown in the turnover tax rate, *) which forms an integral part of this decree.
K § 7
Calculation of tax
(1) The turnover tax is calculated:
(a) the difference between the retail price or, where appropriate, the reduction of the permissible trade impact or part thereof (Article 6) or the fixed sales premium, and the wholesale price. For which products the turnover tax is calculated under this provision, the Federal Ministry of Finance shall:
(b) the difference between the wholesale price determined including the turnover tax according to the relevant price lists and the wholesale price excluding turnover tax;
(c) the percentage of the rate of turnover tax (basic tax) on the wholesale price (or increased by increases for other quality or otherwise) or on costs and permissible profit increases; the additional tax rate (column 4 of the turnover tax) applies to sales to non-eligible customers,
(d) the percentage referred to in column 3 of the Tariff of turnover tax on the commercial price on sales to customers entitled to a trade haircut;
(e) percentage rates according to columns 3 and 4 of the tariff of the turnover tax on the trade price on sales to customers not entitled to a trade haircut;
(f) a fixed amount per unit of goods.
(2) Without prejudice to Article 6 (4), the sales premium is reduced by the difference in turnover tax (paragraph 1 (a)). In cases where the product is invoiced with a percentage tax, the sales premium shall be deducted only from the additional tax. If the additional tax is not invoiced or is not fixed, the sales premium may not reduce the basic tax.
(3) Where there is a change in the wholesale or retail price or a rate of turnover tax or trade deduction (surpluses), for the purposes of turnover tax, the price, percentage or trade deduction (surpluses) shall be that in force on the date of the invoice or other sales document.
(4) Where an undertaking sells goods with a permissible discount on the retail price for reasons of lower quality, the taxable turnover shall be the reduced retail price only if the undertaking also reduces the wholesale price in the same proportion.
(5) Where an undertaking sells goods for which a retail price is not fixed at a permissible discount on the wholesale price, the taxable turnover shall be the reduced wholesale price.
(6) The turnover tax shall be calculated by the undertaking on invoices or their compensations under the invoicing rules. However, if the undertaking has proper evidence to calculate the turnover tax on invoices issued for a specific period, it shall not be obliged to calculate the tax on invoices or their copies. Correspondence, confirmation, statements of sale of goods or other compilation of individual types of invoiced goods shall be regarded as sound evidence, allowing the calculation of the tax on the total quantity of each type of invoiced during a given period. These documents must be linked to the accounts. The District National Committee may withdraw this authorisation from the undertaking if it finds that the documents held in the undertaking do not allow for proper control and do not ensure proper payment of the tax.
(7) In accordance with the provisions in force concerning the introduction and use of the uniform classification of industrial fields and products and the uniform classification of agricultural and forestry products, the undertaking is required to label products on invoices with numerical characters according to the relevant sectoral code lists.
Trade reductions
(1) Turnover tax payments are reduced by a duly granted trade haircut. (*) other organisations are entitled to a trade haircut or part thereof, only if the Ministry of Finance so provides.
(2) Entitlement to a trade haircut may only be claimed when buying goods at retail prices from manufacturing companies, sales and supply organisations, purchasing and foreign trade undertakings, but only for resale.
(3) Businesses, public catering establishments and canteens need not be entitled to a trade collision with the supplier. Where such undertakings buy for their own use products for which retail prices are fixed, they shall, at the latest before invoicing, ask the supplier in writing to invoice the retail price without any trade deduction. Other organisations to which the Ministry of Finance has granted a right to a trade haircut shall be required to obtain it in writing with the supplier in advance.
(4) In the case of products, the sum of the wholesale price mark-up and the retail price cut shall not exceed the amount corresponding to the trade mark-up laid down for contact between production and trade.
(5) The differences between established and agreed trade haircuts shall not be offset against turnover tax.
Tax payment and maturity
(1) Turnover tax is payable: 1)
(a) one amount per quarter;
(b) one amount per month; or
(c) back-up fixed amounts.
(2) Once a quarter, the turnover tax shall be paid by the company with a quarterly tax obligation of up to 100 000 CZK no later than the 15th day following the end of the quarter. The quarterly tax liability shall be calculated in advance for each year as an average of the actual tax liability (offset by negative price differences) for the immediately preceding four quarters.
(3) One amount per month shall be paid by an undertaking with a monthly tax obligation of up to 200 000 Kčs (with the exception of those referred to in paragraph 2) no later than the 15th day of the month preceding that. Monthly tax liability means the average of the actual monthly tax liability (offset by negative price differences) over the immediately preceding three calendar months.
(4) The advance fixed amounts of turnover tax are paid by the company through the relevant branch of the Czechoslovak State Bank on the basis of transfer orders:
(a) twice a month for enterprises with an average monthly tax liability (paragraph 3) of more than 200 000 KKS up to 2 000 000 KKS;
(b) on a daily basis for enterprises with an average monthly tax liability (paragraph 3) above 2 000 000 Kns.
(5) The amount of the advance fixed amounts shall be determined by the district financial administration, after consulting the undertaking, on an average basis over the previous three months; take into account the turnover tax plan for the relevant quarter.
(6) The amount of fixed advance amounts fixed for turnover tax shall be notified by the company to the Czechoslovak branch before the start of the repayment period for which the advance payments are fixed. The transfer orders, marked with the word "preferred," (2), are submitted by the company to the Czechoslovak State Bank branch in such a way that they can be settled at the latest on the due date. The repayment period shall begin on the 16th day of the month for undertakings which pay advance fixed amounts daily [paragraph 4 (b)] and end on the 15th day of the following month.
(7) The undertaking paying the turnover tax by advance fixed amounts twice a month [paragraph 4 (a)] shall pay the first advance not later than the last day of the month and the second by the 15th day of the following month; at the same time as the second advance, it is obliged to make a tax compensation.
(8) The undertaking paying the turnover tax by advance fixed amounts per day [paragraph 4 (b)] shall be obliged to pay the tax for the preceding month at the latest by the 15th day of the following month.
(9) The firm shall settle separately regardless of the advance payments made within 3 days at the latest:
(a) the amount of turnover tax shown in the additional turnover tax report from the date of its submission (surrender to the relevant financial administration or submission to the post office);
(b) additional tax (3) from the date on which it was informed;
(c) the tax increase from the date of service of the decision to increase the tax.
(10) The amount of the outstanding balance recorded at the time of the annual accounts shall be settled by the undertaking by a separate transfer order by 30 January of the current year at the latest.
(11) The excess tax shall be refunded by the district financial administration of the undertaking upon request; otherwise use it to pay the turnover tax.
K § 8
Tax Report
(1) The undertaking is required to submit to the district tax administration a double copy of the prescribed form (4) by the 15th day of each month for the month immediately preceding that. Negative reporting shall not be submitted.
(2) Undertakings with an average quarterly tax liability of up to 100 000 CZK (Article 7 (2)) shall submit turnover tax reports no later than 15 days after the end of each quarter.
(3) If an undertaking finds in addition that the report submitted is incorrect or incomplete, it shall immediately submit to the district financial administration an additional report in duplicate on a prescribed form marked as an additional report indicating the period to which it relates. The additional report shall indicate only differences against the initial report.
(4) After the end of the calendar year, the undertaking shall submit the annual turnover tax on the prescribed form to the District Financial Administration by 27 January. The bill shall also be presented by the undertaking for part of the year if it has been merged with another undertaking during the year, distributed or cancelled. In such cases, the firm shall submit the bill no later than 27 days after the end of the month in which the changes occurred.
K § 9
Notification obligation
The undertaking shall, within a 15-day period, notify the competent district national committee in writing of its establishment, merger, newly affiliated or established establishments, branches, establishments and other units, and of their delimitations, cessation of activity or resettlement, as well as of a change of jurisdiction with the superior authority. If there are several branches or other establishments, they shall notify each relevant district national committee separately.
K § 11
Correction of taxable turnover
(1) The undertaking may make a correction of the taxable turnover in the turnover tax report and apply a deduction of the turnover tax amounting to:
(a) to the price of the goods returned by the customer, where the supplier has not received payment for the goods or if the supplier has repaid them;
(b) to reduce the invoiced price or to increase the wholesale price to the correct level;
(c) to reduce the invoiced price for the lower quality of goods, but only if the wholesale price is also reduced (Article 5 (4) and (5)).
(d) the price of the invoiced goods which has not been delivered, provided that the invoice has been cancelled or credit has been granted;
(e) differences in movements of goods from market to non-market funds.
(2) The deduction of turnover tax may be applied at the latest in the turnover tax report for the sixth month following the end of the calendar month in which the taxable turnover arose.
(3) After the period referred to in paragraph 2, the deduction may still be applied in the following cases:
(a) in the case of unfounded performance,
(b) if the payment for the goods or part of the payment has been repaid on the basis of an enforceable arbitration or judicial decision (conciliation),
(c) where the invoiced price has been reduced or the wholesale price invoiced by the supplier undertaking has been increased on the basis of an enforceable arbitration or judicial decision (conciliation).
(4) The District National Committee may authorise, within the time limit laid down in paragraph 2, the deduction of turnover tax on goods purchased at prices with turnover tax which have been transferred to establishments which process material at prices excluding turnover tax, but only up to the amount of tax paid.
(5) The deduction of turnover tax shall be applied in the turnover tax declaration for the calendar month in which the credit was issued for the reasons referred to in paragraph 1 or the authorisation of the relevant district national committee or in which the invoice for goods transferred to non-market funds was issued. In the cases referred to in paragraph 3, the undertaking may apply the deduction within 15 days of the month in which the arbitration or judicial decision was served on it (the agreed settlement). Should the turnover tax not be sufficient to pay the deductions in a given month, the remaining amount shall be returned directly to the company's turnover, overdraft or current account.
(6) Undertakings are not entitled to invoice the price without turnover tax, nor are they entitled to deduct the turnover tax if they purchase goods from commercial undertakings.
(7) The supplier is obliged to correct the taxable turnover in the following cases:
(a) where he has incorrectly invoiced goods at prices net of turnover tax against the provisions of the Turnover Tax Tariff;
(b) where he has invoiced unjustly goods at prices excluding turnover tax on the basis of an incorrect declaration by a customer who is not a payer of turnover tax. In this case, the supplier is entitled to require an additional turnover tax from the customer, including any tax increase,
(c) where it has provided a trade deduction from the retail price or invoiced goods at a commercial price not increased by an additional tax to a customer who is not entitled to it or who has not properly exercised the right. The second sentence of point (b) shall apply mutatis mutandis,
(d) where he invoiced incorrect prices, incorrect percentage or fixed rates of turnover tax or incorrect trade reductions;
(e) if the customer has returned the goods for which a negative price difference has been paid.
(8) The collector who pays turnover tax is obliged to correct the taxable turnover in the following cases:
(a) where he has unduly requested goods at prices net of turnover tax;
(b) where the products purchased at prices exclusive of turnover tax have been used for purposes for which they are obliged to purchase products at turnover tax prices;
(c) where he has unlawfully purchased at retail prices products which have increased wholesale prices above retail prices. In this case it will pay an additional turnover tax equal to the difference between higher wholesale and lower retail prices.
K § 14
Tax increase
(1) The increase in tax (periodic penalty payments) 5) for each day of delay amounts to 0,05% of the amount due but not less than 100 CZK. The tax increase by the district tax administration will prescribe:
(a) an undertaking which pays tax by one amount (Article 7 (2) and (3)), unless it pays tax by the 15th day of the following month;
(b) an undertaking which pays turnover tax by advance fixed amounts if it fails to comply with the specified instalments or deadlines (Article 7 (4) and (7));
(c) an undertaking which pays turnover tax by advance payment of fixed amounts if it does not make a difference between the sum of advance payments and the tax liability for the preceding month (Article 7 (7) and (8)),
(d) the undertaking to which an additional tax has been fixed, starting on the 16th day following the month (quarter) in which the tax has been reduced; If the tax has been established on the basis of an additional report on turnover tax, the increase in tax is halved;
(e) an undertaking which, before 30 January of the current year, fails to pay the tax arrears found at the time of the annual accounts (Article 7 (10));
(f) an undertaking which does not pay the tax increase in time [Article 7 (9) (c)];
(g) an undertaking which has unlawfully purchased at retail prices products which have increased wholesale prices above retail prices and did not make a difference [Article 10 (8) (c)] from the 16th day following the month (quarter) in which the purchase took place.
(2) The increase shall be calculated for each day of delay from the day following the due date up to and including the date of payment.
(3) In cases where the total increase, in respect of all tax payments for a single tax liability, does not reach Kčs 100, - the amount of Kčs 100 shall be prescribed only once, according to paragraph 1.
Transitional and final provisions
(1) The Ministry of Finance may, for serious reasons, authorise exemptions from this decree.
(2) The Decree of the Ministry of Finance of 15 June 1963 No 152 / 35 000 / 63 implementing Act No 73 / 1952 Coll., on Turnover Tax, as amended by corrigenda and supplements No 152 / 55 540 / 65 of 20 December 1965 and No 152 / 49 058 / 66 of 30 December 1966 with amendments and adaptations issued until 31 December 1967, is hereby repealed.
(4) This Decree shall take effect on 1 January 1968.
First Deputy Minister:
Lér CSc.
*) § 12 zl. No 104 / 66 Sb.
*) Decree of the Ministry of Finance of 15 December 1966 No 152 / 45 500 / 66, registered in the amount of 45 / 1966 Coll.
*) Decree of the Ministry of Internal Trade of 28 December 1966, published in the Central Journal amount 2 / 67.
(1) The payment of negative price differences shall be made by the district financial administrations within the time limits set for payment of the tax.
2) Section 7 of the Order of the Director General of the Czechoslovak State Bank No. 85 / 1966 Coll., on payment and settlement on the accounts of organisations.
3) Paragraph 8 (2) of Act No. 73 / 1952 Coll., on turnover tax.
4) Paragraph 8 (2) of Act No. 73 / 1952 Coll., on turnover tax.
5) Paragraph 14 (1) of Act No. 73 / 1952 Coll., on turnover tax.
*) Vyhl. no 85 / 1966 Coll.
*) Income No 152 / 29 030 / 67 Special arrangements for industries, agriculture and transport. Income No 152 / 29 031 / 67 Special arrangements for non-industrial sectors. Decree No 152 / 29 032 / 67 Special arrangements for organizations of the Ministry of National Defence and the Ministry of Interior.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 95 / 1967 Coll., implementing Act No. 73 / 1952 Coll., on Turnover Tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 04.10.1967 |
|---|---|
| Effective from | 01.01.1968 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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