- Reduced VAT rates of 5 percent and 7 percent must be applied for three consecutive tax years.
- Use of reduced rates starts from the period in which the first VAT declaration with the rates is filed.
- Taxpayers cannot switch to the standard 20 percent VAT rate during this period.
- Early termination is available for taxpayers under the simplified tax system who receive automatic VAT exemptions.
- Changes to or from the reduced rates do not interrupt the relevant tax period.
- The application period for the exemption restarts when the grounds for exemption are lost.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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