(Art. 37 para. 1–4 VAT Act)
- Taxable persons who wish to change from the net tax rate method to the effective reporting method must notify the FTA at the latest 60 days before the beginning of the tax period from which the change is to be made.
- A change is permitted before the end of the entire tax period if reporting is carried out with at least one authorised net tax rate that the FTA has adjusted, unless this is due to a change in the tax rates in accordance with Articles 25 and 55 VAT Act. The change takes place at the time of the change in the net tax rate.
- Persons who exceed one or both thresholds laid down in Article 37 paragraph 1 VAT Act in three consecutive tax periods must change to the effective reporting method at the beginning of the following tax period.
- The tax charged on the fair value of the goods and services at the time of the change may be deducted as input tax in the first reporting period after the change. Article 32 paragraph 2 VAT Act and Articles 72 paragraphs 1–3, 73 and 74 apply by analogy.
- If at the same time as the change to the effective reporting method the manner of reporting under Article 39 VAT Act is also changed, the following corrections must be made as of the date of change:
If a change is made from agreed to collected considerations, the taxable person must deduct the tax declared on the debtor items in the last reporting period before the change; in addition, the tax must be charged on the creditor items for which a subsequent input tax deduction is permitted on the basis of paragraph 4.
If a change is made from collected to agreed considerations, the taxable person must declare the tax on the debtor items at the authorised net tax rates in the last reporting period before the change; no corrections shall be made to the creditor items.