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

(Art. 37 para. 1–4 VAT Act)

¹ Tax­able per­sons who wish to change from the ef­fect­ive re­port­ing meth­od to the net tax rate meth­od must no­ti­fy the FTA in writ­ing at the latest 60 days after the be­gin­ning of the tax peri­od from which the change is to be made. If the no­ti­fic­a­tion is late, the change is ef­fect­ive for the be­gin­ning of the sub­sequent tax peri­od.

² The FTA shall ap­prove the use of the net tax rate meth­od if in the pri­or tax peri­od neither of the thresholds in Art­icle 37 para­graph 1 VAT Act was ex­ceeded.

³ On chan­ging from the ef­fect­ive re­port­ing meth­od to the net tax rate meth­od, no cor­rec­tions or changes shall be made to the stock of goods, the op­er­at­ing ma­ter­i­al and the fixed as­sets. The fore­go­ing does not ap­ply to a cor­rec­tion un­der Art­icle 93 where im­mov­able goods are used after the change to a neg­li­gible ex­tent for an activ­ity en­titling the in­put tax de­duc­tion to be made.⁶²

⁴ If sim­ul­tan­eously with sub­mis­sion to the net tax rate meth­od the man­ner of re­port­ing un­der Art­icle 39 VAT Act is also changed, the fol­low­ing cor­rec­tions must be made:

a.

if a change is made from agreed to col­lec­ted con­sid­er­a­tions, the FTA shall cred­it the tax­able per­son the tax at the ap­pro­pri­ate stat­utory tax rate on the tax­able sup­plies in­voiced but not yet paid on the date of change (debt­or items) and at the same time charge the in­put tax on the tax­able sup­plies in­voiced to it, but not yet paid (cred­it­or items);

b.

if a change is made from col­lec­ted to agreed con­sid­er­a­tions, the FTA shall charge the tax on the debt­or items ex­ist­ing on the date of change at the ap­pro­pri­ate stat­utory tax rate and at the same time cred­it the in­put tax on the cred­it­or items.