Provisional return. As of January 2008, a new form has to be used in order to file the provisional VAT return. The most significant changes compared to the previous form regards the introduction of two additional coefficients, no. 027 and 028.
According to a recent clarification issued by the Ministry of Finance, coefficient 027 refers to input tax incurred for motor vehicles. The input tax incurred regarding the cost of acquisition and production of the motor vehicle and the connected current expenses, entered in the fixed capital, or the costs for leasing or hiring a motor vehicle, have to be indicated.
If, however, a motor vehicle is entered among the circulating assets, neither the input tax nor the current expenses related to a vehicle have to filled in under the coefficient 027. This rule applies also to trailers and semi-trailers but not to tractors or excavators.
Under coefficient 028 exclusively input taxes incurred regarding certain kinds of expenses (such as building cost) of buildings have to be registered. However, expenses of maintenance or current expenses (for example rent, reparations etc.) are not to be registered under this coefficient.
In the event of adjustments due to the change of the tax base regarding motor vehicles and/or buildings, these adjustments have to be registered not only under the coefficient 067, but also under the coefficients 027 and/or 028.
Threshold for the provisional return. According to a communication made by the Ministry of Finance, in 2008 there will be no change in the turnover threshold valid for the provisional VAT tax return. The administration has renounced to put in practice an earlier decision to reduce the threshold from 100.000 to 30.000 euro.
VAT number. The independent tax tribunal of Vienna has released a decision according to which an entrepreneur is obliged to check the correctness of the VAT number indicated in the invoice of another entrepreneur who has rendered a service or delivered goods to him. In case an invalid VAT number is used, one of the essential conditions of the VAT Tax Act is missing and consequently it will not be possible to claim input tax.