Ordinance
on Value Added Tax
(Value Added Tax Ordinance, VAT Ordinance)

(Art. 37 para. 1–4 VAT Act)

1 Per­sons newly entered in the Re­gister of Tax­able Per­sons (VAT Re­gister) who wish to sub­mit to the net tax rate meth­od must no­ti­fy the FTA in writ­ing with­in 60 days of no­ti­fic­a­tion of their VAT num­ber.

2 The FTA shall ap­prove the use of the net tax rate meth­od if in the first 12 months both the ex­pec­ted turnover and the ex­pec­ted taxes do not ex­ceed the thresholds in Art­icle 37 para­graph 1 VAT Act.

3 If no re­quest is made with­in the peri­od in para­graph 1, the tax­able per­son must re­port for at least three years us­ing the ef­fect­ive re­port­ing meth­od be­fore it may sub­mit to the net tax rate meth­od. An earli­er change of the re­port­ing meth­od is pos­sible at the time of any ad­just­ment to the net tax rate that is not due to a change in the rates of tax­a­tion un­der Art­icles 25 and 55 VAT Act.⁶¹

4 Para­graphs 1–3 also ap­ply to ret­ro­act­ive entries ana­log­ously.

5 The VAT chargeable on the stock of goods, the op­er­at­ing ma­ter­i­al and the fixed as­sets at the start of tax li­ab­il­ity is taken in­to ac­count in ap­ply­ing the net tax rate meth­od. No sub­sequent in­put tax de­duc­tion may be made.