Change in the application of flat-rate VAT - MKY GROUP

Practical change in net tax rates

The Federal Tax Administration (FTA) has just introduced a new regulation with regard to net tax rates. Do you run a company that carries out two or more activities that, considered alone, would have to be settled at different net tax rates? Then read here what the change in practice means for you.

The change in practice is particularly effective when the share of secondary employment in total taxable turnover increases.

The following situation is regarded as a sharp increase in the share of sales:

- The main activity is temporarily or permanently suspended AND
- Over the entire tax period, this secondary activity generates more than 50% of the total turnover.

If the above facts apply to you, the second SSS will be approved (also retroactively) to the start of the current tax period. The FTA recommends that the considerations regarding the expected share of revenue from secondary employment be recorded in writing.

Important: Until the end of 2022, this new practice can only be applied if it is more favourable for the taxpayer than the previous practice.

- Example: You run a hairdresser shop (SSS 5.1%), sell additional hair care products and are obliged to close your shop due to the corona measures imposed by the federal government. However, you continue to sell your hair care products via your online shop — the trade will account for more than 50% of the turnover and you can therefore apply for a second balance tax rate (2.0%).

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- Example 2:

Restaurant SSS 5.1% to 100% catering turnover

New due to corona: 100% take-away à second SSS of 0.6% can be applied for.

Do you still have questions? We are happy to help you.


Disclaimer: The content of this blog post is for informational purposes only and does not constitute professional advice. Each individual case should be reviewed individually and we recommend that you seek professional advice for specific questions.