Value Added Tax Sales

Value added tax is the most important indirect taxes, our tax system and also the most complex. We pay it all at the most purchased goods, but must pay her vendors. If you do not know who is paid to what the reduced rate of tax, which is the place of performance in individual cases, as the group registration and many other things, read our guide to value added tax.

Value Added Tax makes up one of the most important sources of income of the state budget. Everyone pays it during purchase of most goods and services. This tax is imposed practically throughout the world and the Czech Republic is naturally no exception. The principle of VAT consists of the supplier, if it is registered as a payer, being required to pay part of the value of its executed trade to the state, if this trade is subject to taxation.

VAT is based on the principle of tax payment to the supplier of the price difference between inputs and outputs, in essence, how much the price of goods rises. In the state budget goes difference between received and paid taxes. Income may be subject to certain conditions, on the other hand returned to the customer.

The principle of x1 Value Added Tax x1 consists of only paying tax on the difference in the price during input and output, i.e. on the amount by which the price of the goods is increased by the supplier. A subject pays suppliers the price plus this tax and receives payment for the goods including this tax. It then pays the difference between the tax it receives and pays to the state budget, or this tax may be refunded. The vat value added tax sales defines goods and services that can be (but do not have to be) the subject of a reduced Value Added Tax rate and determines the minimum value of the basic VAT rate (15%) and the minimum value of the reduced VAT rate (15%).

In most of the countries, the majority of goods and services are subjected to VAT to the basic rate. Law on value added tax precisely calculates the goods and services covered by the reduced rate. For goods such as on food, plants, diapers, books and magazines, selected medical device, child seats and firewood. The services are at a reduced VAT rate of water services, accommodation, public transport, selected services for households and health and care services. The lower rates include driving gyms and saunas, and funeral services.

From value added tax are exempt certain postal services, radio and television broadcasting, financial and insurance services, health care, social care or education and training. Increasing the value added tax is popular means to increase state revenues, because it seldom pays any tax optimization, but as it turned out in 2012, a direct correlation between higher taxes and higher value-added tax no choice.