VAT registration

The entities covered by tax subjective exemption from tax or exclusively engage in tax exempt transactions may (but need not) submit the application to register. If the taxpayers resigned from the exemption,

they should register in due time:

a.  before the date of the first implementation of taxable activity – taxpayers who begin the activity;

b. before the beginning of the month in which the taxpayer resigns from the exempiton – taxpayers continuing the business

Exceptionally the taxpayers mentioned in the regulation of Ministry of Finance of 6 April 2004 has not the obligation to submit the application of registration.¹

Application for registration in the range of VAT shall be submitted to the head of tax office competent for the place of performing of the taxable transactions of the tax.

However, if these transactions are carried out within the scope of activities covered by of two or more tax offices, the individual persons performing one-person economic activity submit the declaration to the head of competent tax office depending on the place of residene.

The head of tax office registers the taxpayer and confirms his registration as an”active taxpayer of VAT” or in the case taxpayers covered with tax subjective exemption or performing only transactions with the exempt from tax as – „VAT exempt taxpayer”. Taxpayers registered as active taxpayers of VAT, who subsequently exempted due to the low turnover in the previous year or reported that they will pursue only activities exempt from tax under Article 43 of the VAT Act, remain in the register as VAT exempt taxpayers

At the request of concerned persons, the head of tax office is obliged to confirm if the taxpayer is registrated as active taxpayer of VAT or VAT exempt taxpayer . Concerned person can be both taxpayer himself and the third person having legal interest to submit the application.

If the entities covered by the exempted tax or exclusively engage in tax exempt transactions start to

carry out the taxable sale, they lose the tax exempt or resign of the exempt, they are obliged to submit the declaration of registration VAT-R and in case taxpayers registrated as VAT exempt taxpayers - to update the declaration, on time:

1. before the day of performing the first sale of gods or services, other than tax exempt, in the case of starting the sale,

2. before the day when the taxpayer lose the right for the subjective exemption, in the case of losing the right,

3. before the beginning of the month in which the taxpayer has abandoned the subjective exemption for persons continuing the activities,

4. before the day of performing the first taxable VAT activity (according to article 5 of Act in the case of resignation of the subjective exemption for beginners of bussiness.

The taxpayer registrated as an active taxpayer of VAT is obliged to put his Tax Identification Number on his invoices and his offers.

If the data contained in the registration form, are changed, the taxpayer is obliged to report the change to the head of tax office during 7 days, counting from the day when the change occured.

Also taxpayers subjected to the obligation of registration as active taxpayers of VAT, are obliged to inform the head of tax office in the registration form VAT-R about the intention of beginning of implementation of these activities before the day of the first inter-community delivery or the first inter-community acquisition.

The enterpreneur who continues the business resigning from the subjective exemption in VAT or losing the right to it should draw up the inventory of the goods he owns. Due to it one can regain the input VAT of the goods which are in warehouse at the moment of covering with VAT. The enterpreneur has 14 days to deliver phisical inventory to the tax office.

After the registration to the tax office the enterpreneur – the taxpayer – should open the revenue accounts of VAT.

However, if the taxpayer registrated as the taxpayer of VAT stopped the implementation of taxable activities, he is obliged to report the fact to the head of tax office; the declaration is a base for the head of the tax office to cross out the taxpayer from the registration as a taxpayer of VAT. The declaration about cessation of the taxable activity in the case of death of taxpayer is submitted by his legal successors. In the case when the declaration about cession of the taxable activity was not submitted, the head of tax office crosses out the taxpayer as a taxpayer of VAT without the necessity of informing the taxpayer about that, if during the checking activities occurs that the taxpayer does not exist or despite some documented trials to contact the taxpayer there is not the possibility to contact him or his proxy.