Special Regimes – Schemes
VAT legislation provides for special arrangements that establish Special Regimes for specific persons.
The Special Regimes-Schemes according to the VAT legislation are the following:
· Special Regime for Farmers
. Special Regime for Taxis
· Special Regime for Travel Agencies and Tour Operators
· Special Regime for Retailers – Retail Schemes
Other special arrangements are:
· Rrofit Margin Schemes for Second-hand Goods Scheme
· Retail Export Scheme
Farmers do not fall within the provisions of VAT Law as regards the supply by them of unprocessed agricultural products of their own produce or agricultural services. However, farmers are entitled to voluntary registration. They may also, under certain conditions be eligible for the Special scheme for farmers.
Special scheme for urban taxis
The special scheme is an alternative system in relationship with the operation of the normal VAT system, for the registration of the owners of urban taxis. Persons that own up to two licenses for use of an urban taxi and work exclusively for the transportation of passengers and their luggage are mandatory registered in the special scheme for taxis.
Tour operators and Travel Agencies
Under this scheme the method of calculation of the taxable value for travel agencies deviates from the general rules. As taxable value of package tours is taken to be the travel agent΄s gross margin resulting after the deduction from the total amount paid of the actual cost to the travel agent.
Under these schemes the method of calculation of the taxable value and the output tax of supplies of goods or services deviates from the general rules. Additionally, special arrangements are provided concerning the books and records that the retailers must keep. The use of a scheme by retailers is optional.
Profit margin for Second-hand Goods and works of art
Under this scheme again the method of calculation of the taxable value for the supply of eligible goods deviates from the general rules along with the books and records that a taxable person is required to keep. The tax due is taken to be included in the gross margin of the trader, provided that such margin has been realized. The use of the scheme is optional for the trader.
Retail Export Scheme
The operation of this scheme is optional for the registered retailer. Under the scheme, a supply of goods, on which the positive rate of VAT was originally imposed, is converted to a zero-rated supply, through correction of the VAT Account, after the retailer receives an invoice, certified by the Customs that the goods were exported.