Read the untranslated law here: http://www.leganet.cd/Legislation/Dfiscal/TVA/D.184.108.40.206.2011.htm
Government Office of the Prime Minister Decree No. 011/42 of 22 November 2011 implementing Ordinance-Law No. 10/001 of 20 August 2010 concerning imposition of the tax on the value added Chapter 1: object chapter II: of the scope of chapter III: of fact generator and of the CHARGEABILITY chapter V: from the system of DEDUCTIONS chapter VI: obligations of parties Chapter VII : Liquidation and recovery of tax on value added Chapter VIII: reimbursement of value added chapter IX tax CREDIT: of PROCEDURES chapter X: offences and penalties chapter XI: transitional chapter XII provisions: the finals the Prime Minister, pursuant to the Constitution, such provisions as revised by Act No. 11/002 of January 20, 2011 , especially in article 92;
Pursuant to Act No. 004/2003 of 13 March 2003 on the reform of tax procedures, as modified and complemented to date;
Having regard to the Ordinance-Law No. 10/001 of 20 August 2010 establishing the tax on the value added;
Having regard to the order No. 08/064 of 26 October 2008 concerning the appointment of a Prime Minister, head of Government;
Given order No. 08/073, December 24, 2008, on the Organization and functioning of the Government, practical arrangements for collaboration between the President of the Republic and the Government as well as between members of the Government, especially in its article 9, paragraphs 1, 2 and 4;
Having regard to the order No. 08/074 24 December 2008 fixing the functions of departments, especially in its article 1, litera B, item 9;
Having regard to the order No. 10/063, September 11, 2011, appointing Deputy Prime Ministers, Ministers and Deputy Ministers;
Whereas it is necessary;
On a proposal from the Minister of finance; The Council of Ministers heard, DECREED: Chapter 1: article 1 Article: this order is intended to secure the enforcement of the order-lot no. 10/001 of 20 August 2010 establishing the value-added tax.
Article 2: Value added tax, VAT in acronym is a general tax on consumption which strikes all goods and services of all origins, used or consumed in Democratic Republic of Congo.
It is a single tax payments split, perceived at each stage of the economic cycle of a product and borne by the final consumer, the tax paid upstream being collected tax deductible.
Chapter II: The field of APPLICATION Section 1 re: taxable transactions Article 3: value added tax aims all operations which are of an economic activity.
Under the control of economic activity, including production, import, export, supply of services, the distribution, including extractive, agricultural, forestry, agro-industrial, craft activities and those of the liberal professions.
Article 4: The taxable transactions to the value added tax include:-tangible deliveries to third parties;
-the provision of services to third parties;
-supplies of goods to yourself;
-the provision of services to oneself;
Subject to deliveries of goods and supplies of services to oneself as well as imports, supplies of tangible personal property and supplies of services made to third parties are taxable to the the value added tax when they are made between two separate persons, for a consideration, that the goal is profit or not, that the profit result or not.
The contribution referred to in the preceding paragraph corresponds to the agreed price. This can be done by cash, cheque, bank transfer, by credit card, by effect of trade, by the delivery of goods or the supply of a service.
The counterparty must have a direct link to the property delivered or service rendered. This connection is established when the operation provides a benefit to the recipient and the consideration for the transaction is in relation to the benefit received.
Article 5: Delivery of tangible property and supplies of services made to third parties shall remain taxable even when they are involved as a result of a request by the public authority.
Requisition of official authority, means the Act by which the civil or military authorities require of a person, of one or more companies, subject to compensation, the provision of work, the supply of goods or the temporary abandonment of properties to ensure the functioning of public services or the satisfaction of public needs.
Article 6: Separate persons, means:-legal different people, if all parties to the transaction are established in the Democratic Republic of the Congo;
-different legal persons or institutions, agencies, offices, branches, if one of the parties is outside the Democratic Republic of the Congo, whether or not they have a distinct legal status.
In addition, the temporary association is regarded as a person separate from its members when dealing with one of them or all.
Paragraph 1: deliveries of tangible personal property made to third Article 7: delivery of a property tangible personal property made to third parties consists of a transfer of the power to dispose of this property as owner, even if this transfer is operated under a requirement of the public authority.
This transfer is effective even if it is has not furnished material good.
Article 8: In case of sale of a well completed under resolutory condition, the transfer of the right to dispose of this property acts upon conclusion of the contract.
Article 9: When the sale of an asset is entered into under a suspensive condition, the transfer of the right to dispose of this property acts towards the condition.
Article 10: The supply of tangible personal property include selling, the exchange of goods, the supply company, consumer loan, hire purchase, sale to temperament, sales of articles and material used made by professionals, disposals of assets, the provision of water, electricity, gas, thermal energy and similar as well as merchandise exports goods and similar operations.
Article 11: within the meaning of the present Decree, the intake of society is only the contribution in kind which the consideration lies in the granting of social rights or resumption of liabilities.
Article 12: The transactions treated as exports of goods include:-construction operations, processing, repair, maintenance, establishing Charter on aircraft used by airlines of air navigation;
-the provision of any article or product intended to be incorporated in the aircraft used by air shipping companies;
-deliveries of goods or objects intended for the refuelling of aircraft making international links;
-construction operations, processing, repair, maintenance, chartering on the marine vessels Congolese and foreign shipping, vessels used for professional fishing sea, river or Lake, the boats of rescue and assistance, and the provision of any article or product intended to be incorporated in these same buildings and boats;
-operations consisting of the delivery of gear and nets so that the supply of any article and product for vessels fishing professional maritime, river or Lake.
-handling operations, shopping and lighterage goods manifested in international transit as well as on the goods exported;
-the supply of goods under a suspensive customs or rights before duty subject to their actual exportation. ;
-supplies of goods and of services carried out in favour of the legal beneficiaries of tax exemptions and special agreements concluded in accordance with the law.
Article 13: Construction operations, processing, repair, maintenance, chartering on aircraft used by airlines of air navigation referred to in the first indent of article 12 of this Decree, are treated as exports of goods provided that services destined for or coming from abroad represent, in the previous calendar year and in turnover at least 80% of all the services which operate said companies.
Article 14: The operations referred to in the fourth and fifth indents of article 12 of this Decree are treated as exports of goods when they are intended for vessels fishing professional maritime, fluvial or lacustrine beyond the national territory.
Article 15: By gear and fishing nets, means the products and objects likely to attract, bait, take and keep the fish, is including the case of groundwater in regulatory mesh, son of fishing nylon, hook, insulated, Luff and float.
Paragraphe.2: Provision of services made to a third Article 16:
Are benefits of services, all transactions other than supplies of tangible personal property. They include all activities which are part of industry or business contract hire.
By industry hire or contract, shall mean a contract by which a person with expertise or capacity any in a specific area, undertakes to carry out for the benefit of another person, subject to payment of the price, work, without alienating its independence in the hardware implementation of its commitments.
Article 17: The supply of services include particular rental property, rental of buildings furniture, transactions involving intangible property, leasing, transport of people and goods, transit and handling, operations within a Liberal, study activity, Council, expertise, and research, the provision of the telecommunications electronic services provided on-line, through operations, sales to consume on the spot, with or without parts repair and way work, real work, undeveloped land and the bare premises rentals by real estate developers, operations contributing to the production or delivery of real property by property developers.
Article 18: The expression "intangible property" covers the rights of use of industrial assets such as inventions, industrial designs, distinctive signs, commercial and geographical names and signs. It also covers literary and artistic property as well as intellectual property such as know-how and industrial or commercial secrets.
Transactions involving intangibles include the assignment or the grant:-of the rights deriving from a patent for invention and protected by the relevant legislation;
-the incorporeal right that an inventor can have on a manufacturing process patent-free;
-rights recognized by the legislation in force on the trademarks of commerce;
-rights that copyright law recognizes any author of a literary or artistic work;
-the right to publicly expose the portrait of a person;
-the right to use a trade name;
-the right to use a sign;
-the right to represent in public one theatrical or other work.
Article 19: Leasing is a financing technique of an asset in which a bank or a financial company acquires a real or personal property to rent it to a company, the latter having the opportunity, either to return the property to the Bank or the finance company, either to request the renewal of the contract, or to redeem it for a residual value generally low at the end of contract.
Article 20: The Liberal activity is that where intellectual activity plays the lead role, which consists of the personal practice of a science or an art and in which there is lack of a relationship of subordination to a superior hierarchical. This is the case including the accounting expert, artist, photographer, writer, veterinarian, midwife, independent nurse and physiotherapist.
Article 21: Through operations, means essentially the activities carried out by the banks, commercial intermediaries and the business agents.
The operations performed by the commercial intermediaries include activities by brokers and Commissionaires.
A business agent is one who performs a habitual way of recoveries for others, who receives mandate to manage the interests of third parties, which gives legal advice and takes part for customers from administration. This is the case of legal advice, tax advice and real estate agent.
Article 22: The work is an activity that is to transform or adapt materials or parts into finished or semi-finished product at the request of a third party, the giver of work, which owns.
Article 23: The services provided electronic online by resident and non-resident companies include the provision and hosting of computer sites, providing online software and their update, the supply of images, text and information, provision of databases, the supply of music, films and games, the supply of books and publications digitized the provision of services for distance education, remote programs and equipment maintenance.
Article 24: Telecommunications, it means any transmission, emission or reception of signs, signals, writings, images and sounds or information of all kinds by wire, radio, optical fiber, or other electromagnetic systems.
The provision of telecommunications means any benefit include the transmission or routing of signals or a combination of these functions by telecommunications processes, with the exception of audiovisual communication services broadcast terrestrially or distributed by cable.
Are telecommunications supplies, telephone services, telex, Telegraph, teleconferencing services services, communications with mobile services, radio services and car phone services.
Paragraph 3: Supplies of goods to oneself Article 25: A supply of goods to oneself means levies and assignments carried out by taxable persons from business property, for:-of the operating requirements for filing capital or excluded the right to deduct property;
-purposes other than those of the operation, namely those of leaders, staff or third parties.
Article 26: The delivery of goods to oneself occurs when the company manufactures itself property and engages them in the State.
It also occurs when the assets acquired by the company and which were the subject of a deduction of the value added tax, are assigned to purposes other than those of the company.
For the purposes of the preceding paragraph, are thus covered the goods assigned to the private use leaders, staff or third parties, including the free distribution of goods and levy in the stock.
Paragraph 4: Providing services to oneself Article 27: service to oneself consist of services that taxable persons carry out from means of the company:-either for their business needs.
- either for other needs in the normal course of their business.
Article 28: for the purposes of this Decree, there are services to self:-in the case of use of well forming part of the assets of a company or made benefits free of charge by the taxable person for the purposes of the company;
-in case of use of a property assigned to the business for the private use of the taxable person, those of its staff or for purposes unrelated to the business; in the case of services carried out free of charge by the taxable person for his private needs, those of its staff or for purposes unrelated to the business.
Paragraph 5: Imports Article 29: import means the entry into the Democratic Republic of the Congo of a good or a service.
The importation of goods is carried out by the only material fact of crossing the border of the Democratic Republic of Congo, without that being necessary to ascertain whether the person who imports has the quality to subject to value added tax, or if it has acquired this property pursuant to a contract or if it already owned , or if the property is imported for purposes purely private or professional.
The import of a service aims the service received from abroad by residents based on a commercial contract or any other document as a contract.
Section 2: Taxable persons paragraph 1: definition Article 30: is subject to the tax on added value, any physical or legal person, public law or private law performing independently as usual or occasional, of value added tax-taxable transactions.
Article 31: Are deemed act independently, people who operate under their own responsibility and enjoy total freedom in the Organization and execution of work induced activity.
Cannot be considered to be subject to the tax on the value added for the performance of its activity, any person who is bound by an employment contract or any other legal relationship creating links of subordination with regard to working conditions, the terms of remuneration and the employer's liability.
Article 32: An operation is deemed to be carried out on a regular basis, when performed repeatedly, and on an occasional basis, or when it is not repetitive nature but that the conditions of its realization leave no doubt on the status of taxable person by the person who performs the.
Paragraph 2: Legal entities of public law Article 33: legal persons of public law, means the State, Provinces, decentralised territorial entities and public institutions.
Legal persons governed by public law are subject a· the value added tax. However, they are not subject to the tax on the value added for the activity of their administrative, social, educational, cultural and sporting services, when their treatment does not lead to distortions in competition conditions.
Article 35: There is distortion in competition when public law legal persons perform their activities under the same conditions as the private audience, prices and advertising means used and they are not subject to the tax on added value for the services listed in section 34 above.
Paragraph 3: Members of the liberal professions Article 36: for the purposes of this Decree, is meant by members of the liberal professions, all persons exercising a liberal activity in the context of legally organized professional bodies.
Professional orders, means organizations responsible for performing a mission of public service by way of regulation and discipline of the profession under the control of the State.
Paragraph 4: Taxable persons established or domiciled outside the Democratic Republic of the Congo section 37: when a subject to the value added tax is established or domiciled outside the Democratic Republic of the Congo. He is required to appoint a representative resident in the national territory.
Article 38: The appointment of the representative is done by certified or notarized letter addressed to the Administration of taxes.
Designated representative is authorized by the Tax Administration in the conditions laid down by order of the Minister having finance in his/her attributions.
Article 39: The representative is jointly and severally liable with the registrant, the declaration and the payment of the tax on the value added as well as supplements of tax established by the Tax Administration.
Article 40: The subject to value added tax may designate that a sole representative for all the operations it carries out in Democratic Republic of Congo.
Article 41: A failure to designate a representative, tax and, where appropriate, penalties y related thereto, are due by the client person on behalf of the taxable person established or resident outside the Democratic Republic of the Congo.
Section 3: the threshold of liability Article 42: physical and legal persons are subject to the the value added tax when their annual turnover achieved is equal to or exceeds the threshold laid down in article 14 of the Ordinance-Law No. 10/001 of 20 August 2010 establishing the value-added tax.
The turnover referred to in the preceding paragraph means the turnover excluding value added tax.
Article 43: For the purposes of section 42 of the present Decree, it must be taken into account for existing businesses, the turnover of the previous year, and for new businesses, of the forecast turnover.
Article 44: Without prejudice to section 42 of the present Decree, members of the liberal professions are subject to tax on the value added regardless of their turnover.
Article 45: The imports are subject to value added tax, regardless of their value.
Section 4: Article 46 exemptions: exemptions to the tax on added value laid down in articles 15 to 19 of Ordinance-Law No. 10/001 of 20 August 2010 establishing the value-added tax are closed. They cannot be extended under the similarities or analogies between exempt and non-exempt transactions.
Article 47: The exemption on the sale and import of agricultural equipment provided for in article 15, paragraph 5, of the Ordinance-Law No. 10/001 of 20 August 2010 establishing the value-added tax applies only to equipment intended for exclusively agricultural use.
A joint order of the Ministers having Agriculture and finance in their attributions determines the list of the equipment concerned.
Article 48: The exemption the importation and sale of pharmaceutical products laid down in article 15, point 9, of Ordinance-Law No. 10/001 of 20 August 2010 establishing the value-added tax applies only to the products for the prevention and treatment of diseases.
Exemption of pharmaceutical inputs only relates to the import and acquisition carried out by companies in the pharmaceutical sector.
A joint order of the Ministers of health and of finance establishes the list of exempt pharmaceutical inputs.
Article 49: Subject to reciprocity and according to quotas set at the beginning of each year by order joint Ministers Foreign Affairs and Finances in their powers, are exempt from the tax on the value added, goods and services to official foreign diplomatic missions and international organizations use and whose list is filed in the Ministry of Foreign Affairs before the end of each year by the head of mission.
Article 50: The exemptions on value-added tax cause the loss of the right to deduction of tax supported upstream for the taxable person who carries out exempt transactions.
Chapter III: The fact generator and of the liability Article 51: the value added tax chargeable is the event that gives rise to the tax claim.
It is composed of:-the delivery of goods, for sales of tangible personal property;
-execution of services and work or services and slices work for the provision of services, including the custom work and real work;
-crossing the borders of the Democratic Republic of the Congo for imports and exports;
-the release for consumption, for goods placed under suspensive customs regimes;
-the exit of goods from the free zone with a view to their release for consumption in the Democratic Republic of the Congo;
-the Act of mutation or transfer of property or, if no act, entry into enjoyment, for real estate transactions carried out by the real estate developers;
-the recorded transfer, enjoyment, or in the absence of mutation, the first entitlement Act, for leases of land not arranged or bare spaces made by real estate developers.
-first use or the first commissioning, goods or supplies of services that providers engage in themselves;
the expiry of the periods to which relate the counts and the receipts, for the supply of goods, supply of services and real estate work giving rise to the establishment of statements of account or successive payments, with the exception of those relating to goods subject to a time or a rental or lease sale;
-the cash price or a down payment for other taxable transactions.
Article 52: The exigibility of the value added tax is the right available services of the Tax Administration to require the party responsible for providing the payment of the fee from a given date.
It operates:-during the transfer of the right to dispose of a property as owner, for the supply of goods made to third parties;
-When using for the first time or first commissioning, for supplies of goods to yourself.
-at the time of the payment of the price, of payments or advances, for supplies of services made to others, and the real work;
-on the date of execution of service, for the provision of services to yourself.
-at the time of the registration of the declaration of release for consumption in Democratic Republic of Congo, for the goods and goods, imported directly, placed under one of the regimes suspensive or out of a free zone;
-on the date of maturity of the effect, in the case of a negotiable instrument discounting;
-maturing of interest or rents, for consumer credit and leasing operations carried out by financial institutions;
-for the delivery of goods or on the occasion of perception of the pre-financing if it exists, to the: operations related to perennial crops;
-at the date of transfer or transfer of ownership, for change of ownership of building.
However, in relation to rentals-sales in the context of social housing, undeveloped land and the bare premises rentals by real estate developers, indebtedness occurs on the date of every maturity.
Article 53: When the contract of sale of property comes with a suspensive condition, the operative and the liability involved at the time of this condition.
Article 54: When the contract of sale of property comes with a Resolutive condition, the operative and the chargeability speakers upon conclusion of the contract.
Article 55: In the event of a supply carried out as part of a subscription contract giving rise to the establishment of counts of successive payments proportional to consumption of the customer, the operative and the liability involved upon expiry of the periods to which they relate these statements or these receipts. .
For the purposes of this Decree, counts are the sums corresponding to the consumption or to services relating to periods already expired under a contract subscription or the performance of which delivery is staggered in time.
Article 57: Cashing means the collection, in any capacity whatsoever, including advances, prepayments, and regulation for balance, due to the completion of the operation or the performance of the work.
He advises:-during the presentation of the species, in the case of cash payment;
-on the date of the presentation of the cheque, in case of payment by cheque;
-on the date of registration to the credit of the account of the provider in case of payment by bank transfer, payment order or by any other means, including electronic means, having a tender in accordance with the legal provisions and regulations in force;
-on the date of the expiry of the Treaty, even if it was delivered to the discount with a financial institution, in case of payment by negotiable.
When the payment is made through a factoring company, cashing coincides with the date of the effective payment of the debt by the debtor.
Article 58: Contractors of public works and construction works as well as providers of services covered by the application and whose services are sometimes accompanied by certain supplies, may be allowed to pay the tax on the value added based on flows on decision of the Director-General of taxes or his delegate in the Province.
The application referred to in the preceding paragraph shall be sent to the supra official by simple letter.
Article 59: The decision of the Director General of taxes or his delegate in the Province is involved in the ten days following the receipt of the request. The absence of a decision within this period is authorization. In this case, the Tax Administration is required to notify the implicit decision to the person concerned.
Article 60: Marked 'Authorization to pay VAT according to the rates' must appear on all invoices issued by the service provider or contractor of public works or construction works.
Article 61: In case of payment of the tax on value added based on flows, indebtedness is constituted by the inclusion of the amount to the account of the client.
Article 62: Permission to pay tax on value added based on flow provides not the debtor to discharge the tax at the time of the receipt of the prize or the deposit if it is earlier than the flow.
Article 63: The authority to pay the tax on value added based on flows is revocable upon written request of the taxpayer who wants to revert to the common law regime. This request is addressed to the Director General of taxes or his delegate in the Province.
Chapter IV: Of the basis of taxation and of rate Section 1st: the tax subsection 1st Base: general scheme Article 64: the tax base consists of all money, values, goods or services received as consideration for the operation, including subsidies, as well as all costs, taxes, duties, taxes or levies of any kind y related; excluding the tax on the value added itself.
It shall particularly consist of: 1. the CIF value plus customs duties, and the if appropriate, consumer rights, for imports of goods;
2. the FOS value, for exports of goods;
3. the value of the products at the time of their release of the free zone;
4. all amounts or values, all benefits, goods or services received or receivable by the supplier in return for delivery, for the supply of goods;
5. all amounts or values, all benefits, goods or services received or receivable by the claimant as consideration for its provision and, where appropriate, the value of expendable for the supply of services;
6. the value of the products received in payment the well delivered, plus, where appropriate, the amount of any cash payment, for trade;
7. the amount from markets, bills or invoices for the works;
8. the cost of the goods subject to these deliveries, for the supply of goods to yourself;
9. the expenses incurred for their performance, for the services oneself 10. the difference between the sale price and the purchase price of each property for sales made by dealers of second-hand goods, of art, of collectibles or antiques;
11. the amount of the rent charged by the leasing companies, leasing operations;
12. the price of the market, inclusive of all taxes, in relation to public procurement.
Paragraph 1: the elements included in the taxable amount Article 65: the added value tax tax base includes the base price of the transaction, taxes, taxes and other levies, other miscellaneous charges and payments in favour of the seller or of the claimant to the title of complement of the prize or compensation.
A. the price of base Article 66: the basic price is constituted by the price of goods or services or the value of goods or services received in payment before the incorporation of the other items listed in article 64 above.
B. taxes, taxes and other levies Article·67: taxes and duties include direct and indirect taxes as well as taxes that make up the operating expenses for the debtor.
C. incidental Article 68: incidental expenses include the costs of transport, packing, handling, storage, for babysitting, insurance, post and commissions.
Article 69: When a sale is concluded franco domicile, the transport costs borne by the vendor are included in the taxable amount of the transaction.
A sale is complete franco domicile when the transfer of ownership of the goods takes place at the domicile of the purchaser and the transport costs are borne by the seller.
Article 70: When the sale is made ex warehouse, charges for carriage by the seller on behalf of the purchaser are added to the price of the goods for the determination of the taxable base, except in two cases below:-transport carried out by the seller is charged depending on the mode of transport, the quantity of goods delivered and distance; in this case, it is a separate, taxable benefit as such;
-transport is provided by a third party commissioned by the seller and latter rebills charges advanced to the carrier for the account of the buyer.
A sale is made ex warehouse if the transfer of ownership takes place at the exit of the goods from the seller store.
Article 71: Lost packaging charged whole with the goods contained therein constitute an element of the price of taxable sale of these goods.
Distinctly billed lost packages are not part of the taxable sale price to the value added tax. In this case. their sale is an operation distinct from that of the goods they contain and taxable as such.
Article 72: When the returnable are not rendered to the seller within the time agreed or in use in the profession, they are regarded as sold and subjected to tax on the value added to the amount of the deposit.
However the amount of logging is less than the purchase price, if the latter who is taken into account.
D. Article 73 compensation: benefits are included in the tax base unless they have the nature of damages.
The allowances do not have the nature of damages if they pay a provision of services or delivery of goods individualized.
E. Article 74 grants: subsidies are included in the taxable base when they represent the single consideration for a taxable transaction or the complement of the price of such an operation.
They agree financial aid granted by persons under public law or private law to offset the shortfalls in income of a business.
Article 75: A grant is considered as complement of the price or the single consideration for a taxable transaction when it has the following characteristics:-the grant is awarded to the supplier or service provider in connection with its sales or its taxable services performed for the benefit of its customers.
-It is paid to complete the price charged to the customer or the claimed fee to the user, or even to completely replace them.
Article 76: Donations, the renunciations of claims and business aid are subject to the same rules as subsidies.
Paragraph 2: Special rules relating to the provision of services Article 77: where the supply of services rendered include the use of supplies, they are included in the taxable base of these services.
These supplies are:-materials or indispensable to the attainment of services products and whose incorporation into the repaired object requires a shaping, transformation or a prior adaptation;
-materials or products that disappear with the implementation of the provision.
Where the supply of services rendered include the use of spare parts, these are not included in the basis of taxation of these services and are imposed separately as a supply of goods.
Spare parts, it means standardized objects that have a role in a determined together, giving rise to a simple operation of installation and can be removed without damage to the whole.
Paragraph 3: Items excluded from the basis of taxation Article 79: discounts, discounts, discounts, cash discounts and further granted price reductions are not included in the basis of taxation of a taxable transaction, provided that they have effectively and for the amount exact to the client, they appear on a Bill original or amendment and that they do not constitute consideration for a transaction any.
Article 80: Disbursements are not included in the taxable base for value added tax provided that:-intermediaries are acting under a warrant prior and explicit;
-they are accountable to their constituents and justify to the tax authority, the nature and the amount of the overpayment;
-they do not include these expenses as their own loads.
Article 81: The amounts corresponding to the free distribution of goods in the context of an advertisement or commercial promotion are not included in the taxable base to the tax on the value added provided that the amount does not exceed 1% of the turnover of the reporting period.
Article 82: Allowances with the nature of damages are excluded from the basic d: tax to the value added tax.
Damages agree to compensatory money of the injury suffered by a person due to non-performance or improper performance of an obligation or by the other party or a third party.
Article 83: Interest income are excluded from the tax base in the the value added tax when they have the character of interest intended to repair damage caused by a delay in the execution of a payment.
Article 84: Without prejudice to the provisions of article 72 of the present Decree, the amounts collected in respect of consignment of identifiable packaging, recoverable and reusable are excluded from the taxable amount for value added tax.
Sub-section 2: Special regimes paragraph 1: General provisions Article 85: special arrangements concerning the basis of assessment for value added tax are provided for the following cases:-sales of goods made by dealers in second-hand goods;
-through operations carried out by the travel agencies and tour operators tourist;
-operations through freight forwarders, Commissioners of transportation and the customs agents.
Paragraph 2: the particular regime of sales of second-hand goods Article 86: the basis of taxation of second-hand goods sales by dealers in second-hand goods is determined in accordance with the provisions of article 64 of the present Decree.
However, when sold second-hand goods acquired from non-taxable persons, the tax base is constituted by the profit margin made by the dealer, reduced by the amount of the tax on the value added relating to the profit margin. The latter is equal to the difference between the selling price charged by the dealer and the cost price.
Article 87: The taxable base for imported second-hand goods value-added tax is determined in accordance with the customs legislation.
Article 88: Dealer in second-hand goods, means the taxable person who, in the context of his economic activity, purchases or imports, with a view to resale, second-hand goods.
Second-hand goods means goods having been the subject of use and are likely to reuse as is or after repair.
Paragraph 3: the particular regime of operations through the travel agencies and of the organizers of the tours section 89: operations through the travel agencies and of the organizers of the tours are subject to tax on the added value on the difference between the total price, inclusive of all taxes, paid by the client and the price, inclusive of all taxes charged to the agency or tour operator by firms who physically execute the services used by the client.
The tax owed by the travel agencies and the organisers of tours is calculated "inside" the difference referred to in the first paragraph above.
However, when the services are rendered to customers using the means of exploitation which the Agency is owner, the tax base is determined in accordance with the provisions of article 64 of the present Decree.
Article 90: for the purposes of this Decree, is meant by travel agency any person whose activity consists, either to organize and sell travel or trips to plan, including housing, either for sale, acting as intermediary, such trips or trips, tickets for transport, transport, housing or meal vouchers.
Article 91: Pursuant to article 89 above, travel agency must ventilate each movement of funds in the accounts, so as to appear separately, in addition to the lump sum, the part that relates to taxable transactions and that relating to exempt transactions.
At the end of each month, the taxable base is obtained by subtracting from the total amount of receipts related to taxable operations, the sum of taxable operations expenditures, reduced the value-added tax.
Paragraph 4: the particular regime of operations through freight forwarders, Commissioners of transportation and the Customs section 92 agents: the tax base of the operations performed by the freight forwarders, freight forwarders and the customs agents consists of the gross remuneration, comprising all the collected amounts, net of the tax on value added and only disbursements relating to transport himself and the clearance when they are justified.
Section 2: the rate of tax on the value added Article 93: the value added tax rate of 16%. It applies to all taxable transactions, except in relation to similar operations and export whose rate is 0%.
Chapter V: The system of DEDUCTIONS Section 1st: General principles of the right to deduct Article 94: tax on the added value that has burdened upstream elements of the price of a taxable transaction is deductible from the tax applicable to this operation for taxable persons.
Article 95: Deductible is tax on value added supported upstream by the taxable person on the purchase or importation of:-raw materials, intermediate goods and consumables used in the composition of the taxable goods or which does not fall within the finished product, are destroyed or lose their specific qualities in a single operation of the same product manufacturing;
-goods to be resold in a taxable transaction;
-services included in the cost of transactions right to deduction;
-movable, immovable property and services acquired for the purpose of exploitation in respect of investments and General.
Taxable persons are authorized to deduct the tax on value added relating to supplies of goods to oneself and to the provision of services to oneself.
Section 2: Conditions for the exercise of the right to deduct Article 96: the right to deduct arises when tax becomes payable by the taxable person.
It is exercised until 31 December of the year following that in which the tax became payable. The expiry of this period, not deducted value added tax is acquired definitively to the Public Treasury and cannot be subject to any deduction.
The taxable person referred to in paragraph 1 above means the provider of property or the service provider.
Article 97: The deduction is operated without waiting for the moment where the goods and services are actually used.
Article 98: Give right to deduction, all goods which have been supplied and services made by the taxable person and that he intended actually to the exercise of economic activity which gives it the status of taxable person.
However, no right to deduct is open for taxable persons who carry out transactions exempt or outside the scope of value added tax and the cases ' exclusion specifically provided by law.
Article 99: To be allowed as a deduction, the value added tax shall be shown:
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