Effective from 1 January 1997:
1. For some goods which are provided together with a building the reduced 6% rate was cancelled and the basic 23% rate is now applicable. Such goods are listed in a special amendment to the VAT Act and may include, for example, carpets, heating, air-conditioning and washing machines.
2. The method for calculating the coefficient for the purpose of VAT recovery has been altered.
Only 10% of the sale price of securities originally purchased on personal account is counted in the denominator. Also, the denominator does not include revenue from shares, sales price of a business or a part of it less tax, or the price for recharged services where the original supply to the taxpayer was exempt.
3. Financial leasing and holding client's securities on account was removed from the section of tax exempt activities.
The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.
For further information contact Ruth Clamp, Arthur Andersen Bratislava on tel: +42 7 5340 545, fax: 42 7 5340 542 or e:mail directly to ruth.a.clamp@ArthurAndersen.com or enter text search 'Arthur Andersen' and 'Business Monitor'.
