The price of short-term rental apartments from the offer of 99 Muses, which our guest clients see and for which they choose to pay is the price shown with VAT (natural persons can not deduct VAT).
Service Fee Payable by Travelers.
It is paid by all participants in sales transactions, which build it in its price and charge it from the next in a row, and it is borne by the ultimate consumer. VAT revenue belongs to the state.
The subject of taxation is the traffic of goods and services that arises in the course of performing activities. The general tax rate is 20%, and special which applies only to certain goods and services 10%.
The turnover in this case was created when you rented your other client, or you leased a real estate, so that he can enjoy the unlimited state during the lease term, and in return you received a monetary compensation for that. The subject of taxation is only traffic generated in the course of performing activities.
Firms and entrepreneurs with low turnover do not have to be in the VAT system. They are called small taxpayers, and the requirement for compulsory entry into the VAT system is currently 8,000,000 dinars. Small bonds do not charge VAT in the outgoing accounts, nor use the previous tax from the supplier’s account as the previous one. They do not charge VAT or submit VAT returns.
As the name suggests, VAT is a value added tax. Added value is the value that you added to the product’s product at the conversion stage. It can be said that this is the difference between the selling and the purchase price when it comes to traders.
If certain conditions are met, we can use the tax that was calculated by the previous participant in circulation to reduce our obligation. This tax is referred to as the previous one, and when we have the right to reduce our obligation, then it is deductible.
If you sold well for 100 dinars, and bought it for 80, the added value is 20 dinars. So, only 20 dinars should be taxed.
How is this achieved in practice? So you will issue to your customer an account of 100 dinars without VAT plus 20 dinars of VAT, and you will receive your account from 80 dinars without VAT plus 16 dinars VAT. At the end of the accounting period, which may be a month or a quarter, you will settle the obligation. You will deduct the previous VAT (the VAT paid by your suppliers in the invoices that you have issued to you) from the exit VAT (the VAT that you have charged in the accounts you issue to customers), if you have the right to deduct (VAT deduction conditions are strictly prescribed by the Law and by-laws); Get your VAT obligation to pay. In our case, the exit VAT is 20 dinars, a deductible 16, so the tax liability for that month is 4 dinars.
So, the company from our example issued to the customer an account in which it showed 20 dinars of VAT, but at the end of the tax period it pays only 4 dinars because it had the right to use 16 dinars of the previous VAT as a deductible item.
The basis for calculating the VAT obligation is accounts, outputs and inputs. They must be in the original and must contain exactly the prescribed elements. All accounts are recorded in the Input and Output Accounts books. These are mandatory records for all who are in the VAT system.
The tax return is submitted electronically by the 15th of the month for the previous month for those taxpayers who pay VAT on a monthly basis, and the 20th in the month for the previous quarter for those who pay VAT three months. This means that by that date, the VAT obligation should be calculated and paid.
It may happen that in one month (or quarter) you have more than the previous tax that you use as a deductible than the VAT that you indicate in invoices to your customers. In that case, the amount you deduct is higher, so your obligation is negative. Then there is an overpayment for VAT. If in the tax period (month or quarter) after VAT calculation you find that you have a payment, you can request a refund of this amount from the state. If you choose not to use the option of refund, the subscription will be recorded with the Tax Administration, and will reduce your commitment in the next period.
Before you return the money at the amount of the declared overpayment, the Tax Administration will check by check whether you have accurately calculated your subscription and do you have all the necessary documentation. If everything is ok, the state will pay you the amount you asked for in the current account.