Value-Added Tax (VAT)

TEACHING UNIT 1. THE COMMON VAT SYSTEM: NATURE AND FUNCTIONING Nature of Value-Added Tax (VAT) Video Tutorial: General Functioning of VAT General Overview of VAT Main Sources of VAT Law VAT and Directive 2006/112/EC (formerly the Sixth Directive) Distinction from the Concept of Transfer of Property for Consideration Under the Tax on Transfers of Property and Documented Legal Acts TEACHING UNIT 2. SCOPE OF APPLICATION OF VALUE-ADDED TAX The Material Scope of Application: Taxable and Non-Taxable Transactions The Territorial Scope of Application of VAT TEACHING UNIT 3. VAT TAXABLE EVENT Introduction: The elements of the taxable event Supplies of goods Own-use of goods Supplies of services Intra-Community acquisitions Imports TEACHING UNIT 4. EXEMPTIONS FROM VALUE-ADDED TAX General Provisions Exemptions Applicable to Certain Activities of General Interest: Health, Education, Social, Cultural, Sports, Financial, and Real Estate Exemptions Related to Other Activities Technical Exemptions Exemptions Related to Intra-Community Transactions Exemptions for Services Provided by Intermediaries Exemptions for Transactions Related to the International Movement of Goods Video Tutorial: Summary of VAT Exemptions LEARNING UNIT 5. PLACE OF THE TAXABLE EVENT Introduction: Application of General and Special Rules Place of the Taxable Event for Supplies of Goods Place of the Taxable Event for the Provision of Services Determining the Place of the Taxable Event for Intra-Community Acquisitions Determining the Place of the Taxable Event for Imports of Goods TEACHING UNIT 6. TAXABLE PERSONS FOR VALUE-ADDED TAX Taxable Persons and Those Liable for Tax in Domestic Transactions Video Tutorial: Reverse Charge Special Cases: Jointly Owned Property and Other Entities Under Article 35(35.4) of the General Tax Law Persons Liable for the Tax Substantive Obligations of the Taxable Person Formal Obligations of the Taxable Person Obligations Related to Certain Import and Export Transactions TEACHING UNIT 7. ACCRUAL AND PAYABILITY OF VALUE-ADDED TAX General Provisions Accrual on Supplies of Goods and Services Accrual on Intra-Community Acquisitions of Goods Accrual on Imports of Goods TEACHING UNIT 8. THE TAXABLE BASE FOR VALUE-ADDED TAX Definition and General Rules Methods for Determining the Taxable Base Provisional Determination of the Tax Base Supplies of Goods and Services: Items Included in and Excluded from the Tax Base Tax Base for Intra-Community Acquisitions of Goods Tax Base for Imports of Goods Specific Rules for Determining the Tax Base: Own Use Tax Base for Transactions Between Related Parties Other Transactions (Sales Commission; Purchase Commission; Brokerage on One’s Own Behalf) Adjustment of the Tax Base TEACHING UNIT 9. VALUE-ADDED TAX RATES Application of Rates Structure and Levels of Rates: Standard, Reduced, and Super-Reduced Formal Obligations: Invoicing and Accounting TEACHING UNIT 10. VALUE-ADDED TAX DEDUCTIONS AND REFUNDS General Rules Special Rules Refunds TEACHING UNIT 11. FORMAL OBLIGATIONS OF THE VALUE-ADDED TAX TAXPAYER Formal Obligations of the Taxpayer TEACHING UNIT 12. VALUE-ADDED TAX ADMINISTRATION Census Returns (who is required to file; form; content) Self-Assessments (forms, deadlines, place of filing) Video Tutorial: Practical Example of Form 303 Informative Returns (Forms 390, 349, and 347) Appointment of a Representative Violations and Penalties TEACHING UNIT 13. SPECIAL VALUE-ADDED TAX REGIMES Special regime for SMEs Special regime for agriculture, livestock, and fishing Special regime applicable to used goods, works of art, antiques, and collectibles Special regime for travel agencies Special regime for the equivalence surcharge Special regime applicable to investment gold Special regimes applicable to distance sales and certain domestic supplies of goods and services Special regime for corporate groups