Differences in accounting

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Differences in accounting

• Topic
• VAT

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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 (childrens clothing), exempt (postage)
IFRS
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Details Austria 1/2

• 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.

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Details Austria 2/2

• Further Information in our learning objects
• Grundzuege_der_USt
• Vorsteuer_und_Zahllast
• Organisation_und_Systeme
• Geschaefte_im_Ausland
• Verbuchung der Umsatzsteuer Test_Umsatzsteuer

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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.

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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.

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Details Germany

• 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
• 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.

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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

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Details Estonia

• 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
• 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.

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Details Finland 1/2

• 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
• 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
  
• 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.

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Details Finland 2/2

• Standard tax rate 22
• all supplies, services otherwise, own consumption
  and import
• Reduced tax rate of 17
• 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

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Details Hungary

• Taxfree turnovers
• subjective if the annual income of the
  enterprise dont exceed the amount of 4.000.000,-
  Forint.
• objective for special activities (e.g. sanitary
  services, education, postal services, insurance
  office)
• Taxfree sales with VAT departure right
• export in third country area
• deliveries within EU countries
• Emergence of the tax liability
• is charged monthly
• quarterly
• and annually.
• 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.

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Details United Kingdom

• 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 childrens 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.

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Details IFRS
International Financial Report Standards