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

(Art. 37 para. 1–4 VAT Act)

¹ If, from the date of the takeover, a tax­able per­son re­port­ing un­der the net tax rate meth­od does not use all or part of the as­sets taken over us­ing the no­ti­fic­a­tion pro­ced­ure un­der Art­icle 38 VAT Act or uses such as­sets only to a less­er ex­tent than the seller of a busi­ness en­titled to de­duct in­put tax, the pro­ced­ure is as fol­lows:⁶⁶

a.

if the seller re­ports un­der the net tax rate meth­od, no cor­rec­tions are made;

b.

if the seller re­ports un­der the ef­fect­ive meth­od, on that part of the as­sets taken over which is used in fu­ture for a busi­ness activ­ity not en­titling him to de­duct the in­put tax, own use with­in the mean­ing of Art­icle 31 VAT Act must be re­por­ted tak­ing in­to con­sid­er­a­tion Art­icle 38 para­graph 4 VAT Act.

² If a tax­able per­son re­port­ing un­der the net tax rate meth­od uses all or part of the as­sets taken over us­ing the no­ti­fic­a­tion pro­ced­ure un­der Art­icle 38 VAT Act to a great­er ex­tent than the seller for a busi­ness activ­ity en­titling him to de­duct the in­put tax, a cor­rec­tion is not per­mit­ted.