How to calculate the coefficient under Article 73(2) of the VAT Act
After the change to the Regulation implementing the VAT Act, in force from 29.01.2016, the person calculates the coefficients under Article 73 of the Act themselves, rounding them to the second decimal place up to the next higher number. The Regulation includes an example, and for many readers it is not clear what exactly the rule is.
I have attached an example which, I hope, will help clear up this puzzle.
Example of calculating the coefficient:
|
Row |
Value |
|
Coefficient |
|
1 |
0,1200000 |
= |
0.12 |
|
2 |
0.1200001 |
= |
0.13 |
|
3 |
0,1210000 |
= |
0.13 |
|
4 |
0,1220000 |
= |
0.13 |
|
5 |
0,1230000 |
= |
0.13 |
|
6 |
0,1240000 |
= |
0.13 |
|
7 |
0,1250000 |
= |
0.13 |
|
8 |
0,1260000 |
= |
0.13 |
|
9 |
0,1270000 |
= |
0.13 |
|
10 |
0,1280000 |
= |
0.13 |
|
11 |
0,1290000 |
= |
0.13 |
|
12 |
0,1300000 |
= |
0.13 |
|
13 |
0,1300001 |
= |
0.14 |
In other words, we look at what comes after the second decimal place.
If there are no other digits after the second decimal place (i.e. the value has 2 decimal places), the coefficient equals the value: rows 1 and 12 of the example.
If there are other digits after the second decimal place, we round up to the next higher number
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REGULATION IMPLEMENTING THE VALUE ADDED TAX ACT
In force from 01.01.2007Issued by the Ministry of Finance… amended and supplemented, State Gazette No. 8 of 29 January 2016
Calculating the coefficient under Article 73(2) of the VAT Act
Art. 64. (3) (Amended, State Gazette No. 16 of 2007, in force from 01.01.2007; amended, State Gazette No. 8 of 2016, in force from 29.01.2016) The person must have the data needed to calculate the coefficients under Article 73 of the Act, which they calculate themselves, rounding them to the second decimal place up to the next higher number according to the rule:
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