Art. 106

(Art. 39 VAT Act)

1. On changing from reporting under the collected considerations to reporting under the agreed considerations method, the taxable person must in the reporting period following the change:
   1. report the tax on the debtor items existing at the time of change; and
   2. deduct the input taxes on the creditor items existing at the time of change in connection with the business activities entitling the input tax deduction.
2. On changing from reporting under the agreed considerations to the collected considerations method, the taxable person must in the reporting period following the change:
   1. deduct the debtor items existing at the time of change from the considerations collected in this reporting period; and
   2. deduct the input taxes on the creditor items existing at the time of the change from the input taxes paid in this reporting period.
3. If simultaneously with the change in the form of reporting the reporting method under Articles 36 and 37 VAT Act is also changed, Article 79 paragraph 4 or Article 81 paragraph 6 applies.