Differences in accounting
Topic:
VAT
Overview VAT
Normally 20%, reduced tax rate 10% (e.g. food, books, train ticket, flat rent), reduced
tax rate 12% (e.g. wine and other fermented drinks), exempt from the VAT (e.g. post,
export in third country area).
Normally 25% on all goods and services. exempt from the VAT (e.g. in the area of
health care, public assistance, education, ... more in the details chapter)
Normally 18%, reduced tax rate 5% (e.g. medical products, books), exempt from the
VAT (e.g. post, properties).
Normally 19% (from 2007), reduced tax rate 7% (e.g. food, books, train ticket,
culture), exempt from the VAT (e.g. flat rent, interest, post, properties).
Normally 22%. reduced tax rate 17% (e.g. food, animal feed), reduced tax rate 8%
(e.g. passenger transportation services), exempt from the VAT (e.g. subscriptions to
newspapers and periodicals, the supply of gold to Central Bank, international trade).
Normally 20%, reduced tax rate 5% (e.g. medical products, books)
Normally 17.5%, reduced rate 5% (e.g. domestic fuel), zero rated (children‘s clothing),
exempt (postage)
IFRS
Details Austria 1/2
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An enterprise is allowed to subtract input tax (Incoming invoice)
The payment is calculated: VAT – input tax
An enterprise with a turnover under € 22.000.- can choose if it wants to pay VAT. If not it is not
possible to subtract the input tax.
Not taxable services:
– export to the third world country area
– deliveries within EU - countries
– rating and arranging of credits
– turnovers from legal means of payment, value notes and bonds
– turnovers given of insurance relationships
– postal charges for parcel and letter handling
No input tax deduction: in the case of purchase, rent and use of motorcars, station wagons and
motorcycles.
You can deduct input tax in the case of purchase, rent and use of trucks, box waggon, flatbed
trucks and as well small motorbuses
For the net VAT payable, the entrepreneur is obliged to pay for every month by the 15th of the
month after next.
Value added tax return shall be submitted to the tax authority by 31 march of the following year.
Details Austria 2/2
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Further Information in our learning objects:
Grundzuege_der_USt
Vorsteuer_und_Zahllast
Organisation_und_Systeme
Geschaefte_im_Ausland
Verbuchung der Umsatzsteuer
Test_Umsatzsteuer
Details Denmark
If you are registered as a company, you have to pay VAT.
Services that are not taxable in Denmark within the following areas:
• health care
• public assistance
• education
• sports
• culture
• art
• real property
• insurance
• personal transportation
• travel agencies/tourist bureaus
• funerals
• charitable events
If you buy, sell or provide a service that is exempt from tax and that has its delivery place in Denmark
no tax will be charged.
Details Denmark
0 VAT pertains to the following services:
• export to the third world country area
• Rental of ships and aircraft including repairs, maintenance and conversion costs. The
ships must have a gross tonnage of 5 or more. Rental, repairs and maintenance of
fixed equipment are also tax exempt. Exemption does not include services on sports
planes or pleasure craft.
• Services carried out for planes or ships in foreign trade and cargo,
• Transport services for diplomatic and consular representation and related personnel in
other EU countries.
• Services in international organisations in other EU countries.
• Services that are directly connected to the import of goods according to the following
agreements:
- Community shipment
- Asset improvement
- Temporary import
- Goods for storage in the Free Port of Copenhagen or bonded warehouses.
• Certain agency services.
Details Germany
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An enterprise is allowed to subtract the input tax (Incoming invoice) only if it pays the VAT
The payment is calculated: VAT – input tax and is to be paid till 10 days after the last day of the
month.
An enterprise with a turnover under € 50.000.- can choose if it wants to pay VAT. If not it is not
possible to subtract the input tax.
Not taxable services:
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export to the third world country area
deliveries within EU - countries
rating and arranging of credits
turnovers from legal means of payment, value notes and bonds
turnovers given of insurance relationships
postal charges for parcel and letter handling
Purchase, rent and leasing of property
In the case of purchase, rent and use of motorcars, station wagons and motorcycles, it is allowed
to deduct the input tax.
The same deduction is also with trucks, box wagons, flatbed trucks and small motorbuses.
For the net VAT payable, the entrepreneur is obliged to pay for every month by the 10th of the
next month. (extension by 1 month possible)
Value added tax return shall be submitted to the tax authority by 31 march of the following year.
Details Germany
Further information you will find in our learning objects:
Grundzuege_der_USt
Vorsteuer_und_Zahllast
Organisation_und_Systeme
Geschaefte_im_Ausland
Verbuchung der Umsatzsteuer
Test_Umsatzsteuer
Details Estonia
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An enterprise is allowed to subtract input tax (Incoming invoice)
The payment is calculated: VAT – input tax
An enterprise with a turnover under € 16 000 can choose if it wants to pay VAT. If not, it is not
possible to subtract the input tax.
Not taxable services:
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export to the third world country area
deliveries within EU - countries
rating and arranging of credits
turnovers from legal means of payment, value notes and bonds
turnovers given of insurance relationships
postal charges for parcel and letter handling
Input VAT on goods or services relating to the reception of guests or the provision of meals or
accommodation for employees shall not be deducted from calculated VAT.
For the net VAT payable, the entrepreneur is obliged to pay for every month by the 20th of the
month after next.
Value added tax return shall be submitted to the tax authority by the 20th day of the month
following the taxable period.
Details Finland 1/2
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An enterprise with a turnover under € 8.500.- can choose if it wants to pay VAT. If not it is not
possible to subtract the input tax.
For the net VAT payable, the entrepreneur is obliged to pay for every month until the 15th of the
month after next.
No income tax deduction (subtraction from the VAT) in the case of purchase, rent and use of
motorcars, station wagons and motorcycles.
The following supplies of goods and services are exempt of the VAT:
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hospital and medical care;
social welfare services
educational, financial and insurance services
lotteries and money games
transactions concerning bank notes and coins used as legal tender
real property including building land
certain transactions carried out by blind persons
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interpretation services for deaf persons
The seller of these tax-exempt services or goods is not subject to VAT and does not pay tax on
sales.
Details Finland 2/2
Standard tax rate 22 %
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all supplies, services otherwise, own consumption and import
´Reduced tax rate of 17%
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food and animal feed (not applied to serving of food and drinks).
Reduced tax rate of 8%
– cinema performances
– physical exercise services
– books
– pharmaceuticals
– entrance fees to commercial, cultural and entertainment events and facilities
– passenger transportation services
– assignment of the right to use lodging or a landing stage when calling at a port
Tax free:
– subscriptions to newspapers and periodicals (the sale of individual copies is fully taxed)
– deliveries within EU - countries
– turnovers from legal means of payment, value notes and bonds
– postal charges for parcel and letter handling to EU-countries and abroad
– international trade
Details Hungary
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Taxfree turnovers:
– subjective: if the annual income of the enterprise don’t exceed the amount of
4.000.000,- Forint.
– objective: for special activities (e.g. sanitary services, education, postal services,
insurance office)
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Taxfree sales with VAT departure right:
– export in third country area
– deliveries within EU – countries
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Emergence of the tax liability:
– is charged monthly
– quarterly
– and annually.
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Value added tax return shall be submitted to the tax authority by the 20th day after
the taxable month (taxable quarter). In the case of annual charging it shall be
submitted by the 15th February after the taxable year.
Details United Kingdom
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A business does not have to register for VAT unless its annual turnover exceeds £60000. This limit
is raised from time to time. The current limit is for the tax year 2005/06
Normal tax rate: 17.5 %
Reduced tax rate: 5 % (domestic fuel)
Zero rated: children’s clothing
Tax free: postage
Inputs can be reclaimed if businesses charge VAT at Standard, Reduced or Zero Rate if the
expenditure was business related. If the expense was not wholly for business use then the
percentage of business use can be claimed back. Inputs can not be reclaimed if the business is
exempt from charging VAT.
Most businesses file their VAT return on a quarterly basis. At the end of the quarter the business
has one calendar month to file a VAT Return and pay any monies owing.
Details IFRS
International Financial
Report Standards