(Tax News Reporter - Week Ended 26 November 1996)
A special VAT ruling has been issued which is applicable to taxpayer in arrears. If there are no sales in a certain accounting period and accordingly no output VAT, the input VAT charged by suppliers during that period is not eligible for offset. If there is output VAT, excess amounts of input VAT must be allocated in the first place against outstanding VAT or other tax liabilities to the federal budget. If all taxes have been paid and there is still an excess of input VAT, this should be carried forward to be credited against future VAT payments.
Telegram of the Ministry of Finance and the State Tax Service of 1 October 1996 No. 1-35/93 and VZ-6-03/682
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