1. Differences in accounting Topic: VAT

2. Overview VAT Normally 20%, reduced tax rate 10% (e.g. food, books, train ticket, flat rent), reduced tax rate 12% (e.g. wine and other fermented drinks), exempt from the VAT (e.g. post, export in third country area). Normally 25% on all goods and services. exempt from the VAT (e.g. in the area of health care, public assistance, education,... more in the details chapter) Normally 18%, reduced tax rate 5% (e.g. medical products, books), exempt from the VAT (e.g. post, properties). Normally 19% (from 2007), reduced tax rate 7% (e.g. food, books, train ticket, culture), exempt from the VAT (e.g. flat rent, interest, post, properties). Normally 22%. reduced tax rate 17% (e.g. food, animal feed), reduced tax rate 8% (e.g. passenger transportation services), exempt from the VAT (e.g. subscriptions to newspapers and periodicals, the supply of gold to Central Bank, international trade). Normally 20%, reduced tax rate 5% (e.g. medical products, books) Normally 17.5%, reduced rate 5% (e.g. domestic fuel), zero rated (childrens clothing), exempt (postage) IFRS

3. Details Austria 1/2 An enterprise is allowed to subtract input tax (Incoming invoice) The payment is calculated: VAT – input tax An enterprise with a turnover under 22.000.- can choose if it wants to pay VAT. If not it is not possible to subtract the input tax. Not taxable services: –export to the third world country area –deliveries within EU - countries –rating and arranging of credits –turnovers from legal means of payment, value notes and bonds –turnovers given of insurance relationships –postal charges for parcel and letter handling No input tax deduction: in the case of purchase, rent and use of motorcars, station wagons and motorcycles. You can deduct input tax in the case of purchase, rent and use of trucks, box waggon, flatbed trucks and as well small motorbuses For the net VAT payable, the entrepreneur is obliged to pay for every month by the 15th of the month after next. Value added tax return shall be submitted to the tax authority by 31 march of the following year.

4. Details Austria 2/2 Further Information in our learning objects: Grundzuege_der_USt Vorsteuer_und_Zahllast Organisation_und_Systeme Geschaefte_im_Ausland Verbuchung der Umsatzsteuer Test_Umsatzsteuer

5. Details Denmark If you are registered as a company, you have to pay VAT. Services that are not taxable in Denmark within the following areas: health care public assistance education sports culture art real property insurance personal transportation travel agencies/tourist bureaus funerals charitable events If you buy, sell or provide a service that is exempt from tax and that has its delivery place in Denmark no tax will be charged.

6. Details Denmark 0 VAT pertains to the following services: export to the third world country area Rental of ships and aircraft including repairs, maintenance and conversion costs. The ships must have a gross tonnage of 5 or more. Rental, repairs and maintenance of fixed equipment are also tax exempt. Exemption does not include services on sports planes or pleasure craft. Services carried out for planes or ships in foreign trade and cargo, Transport services for diplomatic and consular representation and related personnel in other EU countries. Services in international organisations in other EU countries. Services that are directly connected to the import of goods according to the following agreements: - Community shipment - Asset improvement - Temporary import - Goods for storage in the Free Port of Copenhagen or bonded warehouses. Certain agency services.

7. Details Germany An enterprise is allowed to subtract the input tax (Incoming invoice) only if it pays the VAT The payment is calculated: VAT – input tax and is to be paid till 10 days after the last day of the month. An enterprise with a turnover under 50.000.- can choose if it wants to pay VAT. If not it is not possible to subtract the input tax. Not taxable services: –export to the third world country area –deliveries within EU - countries –rating and arranging of credits –turnovers from legal means of payment, value notes and bonds –turnovers given of insurance relationships –postal charges for parcel and letter handling –Purchase, rent and leasing of property In the case of purchase, rent and use of motorcars, station wagons and motorcycles, it is allowed to deduct the input tax. The same deduction is also with trucks, box wagons, flatbed trucks and small motorbuses. For the net VAT payable, the entrepreneur is obliged to pay for every month by the 10th of the next month. (extension by 1 month possible) Value added tax return shall be submitted to the tax authority by 31 march of the following year.

8. Details Germany Further information you will find in our learning objects: Grundzuege_der_USt Vorsteuer_und_Zahllast Organisation_und_Systeme Geschaefte_im_Ausland Verbuchung der Umsatzsteuer Test_Umsatzsteuer

9. Details Estonia An enterprise is allowed to subtract input tax (Incoming invoice) The payment is calculated: VAT – input tax An enterprise with a turnover under 16 000 can choose if it wants to pay VAT. If not, it is not possible to subtract the input tax. Not taxable services: –export to the third world country area –deliveries within EU - countries –rating and arranging of credits –turnovers from legal means of payment, value notes and bonds –turnovers given of insurance relationships –postal charges for parcel and letter handling Input VAT on goods or services relating to the reception of guests or the provision of meals or accommodation for employees shall not be deducted from calculated VAT. For the net VAT payable, the entrepreneur is obliged to pay for every month by the 20th of the month after next. Value added tax return shall be submitted to the tax authority by the 20th day of the month following the taxable period.

10. Details Finland 1/2 An enterprise with a turnover under 8.500.- can choose if it wants to pay VAT. If not it is not possible to subtract the input tax. For the net VAT payable, the entrepreneur is obliged to pay for every month until the 15th of the month after next. No income tax deduction (subtraction from the VAT) in the case of purchase, rent and use of motorcars, station wagons and motorcycles. The following supplies of goods and services are exempt of the VAT: –hospital and medical care; –social welfare services –educational, financial and insurance services –lotteries and money games –transactions concerning bank notes and coins used as legal tender –real property including building land –certain transactions carried out by blind persons –interpretation services for deaf persons The seller of these tax-exempt services or goods is not subject to VAT and does not pay tax on sales.

11. Details Finland 2/2 Standard tax rate 22 % all supplies, services otherwise, own consumption and import ´Reduced tax rate of 17% food and animal feed (not applied to serving of food and drinks). Reduced tax rate of 8% – cinema performances – physical exercise services – books – pharmaceuticals – entrance fees to commercial, cultural and entertainment events and facilities – passenger transportation services – assignment of the right to use lodging or a landing stage when calling at a port Tax free: – subscriptions to newspapers and periodicals (the sale of individual copies is fully taxed) – deliveries within EU - countries – turnovers from legal means of payment, value notes and bonds – postal charges for parcel and letter handling to EU-countries and abroad – international trade

12. Details Hungary Taxfree turnovers: –subjective: if the annual income of the enterprise dont exceed the amount of 4.000.000,- Forint. –objective: for special activities (e.g. sanitary services, education, postal services, insurance office) Taxfree sales with VAT departure right: –export in third country area –deliveries within EU – countries Emergence of the tax liability: –is charged monthly –quarterly –and annually. Value added tax return shall be submitted to the tax authority by the 20th day after the taxable month (taxable quarter). In the case of annual charging it shall be submitted by the 15th February after the taxable year.

13. Details United Kingdom A business does not have to register for VAT unless its annual turnover exceeds £60000. This limit is raised from time to time. The current limit is for the tax year 2005/06 Normal tax rate: 17.5 % Reduced tax rate: 5 % (domestic fuel) Zero rated: childrens clothing Tax free: postage Inputs can be reclaimed if businesses charge VAT at Standard, Reduced or Zero Rate if the expenditure was business related. If the expense was not wholly for business use then the percentage of business use can be claimed back. Inputs can not be reclaimed if the business is exempt from charging VAT. Most businesses file their VAT return on a quarterly basis. At the end of the quarter the business has one calendar month to file a VAT Return and pay any monies owing.

14. Details IFRS International Financial Report Standards