As of 1st January 2012, the general VAT rate increases from 25% to 27%. If the amount is specified incl. VAT, percentage 21,26% shall be applied for tax amount determination. When issuing invoices, tax rate to be quoted in the invoice shall be determined on the basis of the following rules:
According to the general rule, the date of delivery determines the VAT rate to be quoted in the invoice. In transactions fulfilled up to 31. December 2011, invoices shall be issued with 25% VAT, after that date, with 27%. In the case of invoices for advance payment, date of receiving the advance payment, date of crediting the bank account with the advance amount shall be deemed as date of delivery; the above rule shall be applied accordingly.
In the case of transaction with continuous fulfilment, the rate of value-added tax shall be defined as follows:
|period of delivery||date of payment||VAT rate|
|2011 and 2012||2011||25%|
|2011 and 2012||2012||25% and 27% distributed in proportion of days|
As an additional change of the Act on value-added tax valid as of 1st January 2012, input tax charged for rented passenger cars, motorcycles with cylinder capacity above 125 cm3 and watercrafts can be deducted. This input tax deduction is possible for rented vehicles and in share of business use only. Tax payer has to properly document the business use.