LAW OF THE REPUBLIC OF BELARUS
of 19 December 1991
ON VALUE-EDIT TAX
ARTICLE 1. TAX PAYERS
Taxpayers shall be legal persons (including foreign ones) carrying
out production and commercial activities on the territory of the Republic
of Belarus, branches, representations and other legal persons structural
subdivisions which are situated outside the Republic of Belarus and carrying
out their activities on the territory of the Republic (further in the text
mentioned asenterprises) and owners carrying out their activities without
forming the legal person.
ARTICLE 2. OBJECT OF TAXATION
The object of taxation shall be the value, which is added by an enterprise
(both in the production sphere and that of circulation) to the value of
raw materials, materials or goods in the production and realization of
the products and goods, the performance of work and the rendering of services.
Value- added tax shall be levied on: 1) value, added when selling all goods,
manufactured, acquired or procured, from some legal persons to other legal
or physical persons. Goods shall be an object, a product, a property; 2)
value, added when selling goods and services within an enterprise for its
own utilization for purposes, that are not connected with its production
activities, as well as to its workers; 3) value, added when performing
work and services; 4) value, added when supplying products without paying
their value in exchange of other products (services), as well as gratuitous
transfer of goods and services. Value-added tax shall not be levied on
returns from the realization of goods (work, services), which are subject
to budgetary excise duties.
ARTICLE 3. TAXABLE TURNOVER
Taxable value-added shall be calculated, from the sum obtained for
the goods, work or services, less the material expenses for the production
of these goods (work, services), and also from the difference between income
and expenses received as a result of unmarketable operations. The money
received by enterprises in the form of financial assistance (excluding
the means coming from the centralized funds of ministries, departments
and the budget), enrichment of special funds or directed for increasing
income, and sums received as the difference between the paid and received
fines, penalties and other kinds of incomes got from unmarketable operations
(exluding sanctions and penalties coming into the budget) are included
into the taxable turnover. The taxable turnover of legal persons does not
include taxable profits, and also money transferred to the Byelorussian
Society of Invalids, to the Byelorussian Society of Deafs, to the Byelorussian
Association of Sight Invalids as assistance for solving their statutory
tasks. In the case of realizing bought products at prices lower than the
prices at which they were obtained taxable turnover is calculated from
the purchase prices of the realized goods. Value added tax shall be calculated
from the value added of the enterprise as a whole. For taxable and tax
privilege production (work, services) financial expenses are distributed
from the specific gravity of this production (work, services) in income
received in case of determining of actual value added. Amortization of
basic funds are not included in financial expenes. In goods exchange operations
of home manufacture products or similar turnover when payment for goods,
work or services is replaced with supply of goods, perfomance of work or
randering of services a taxable turnover is calculated from the prices
(tariffs) of each kind of goods, work, services which are used by enterprises
at the day of transaction. Value added is calculated the same way when
enterprises use goods for their own needs for the purposes which are not
connected with their production activities. In the case of realization
of goods obtained as a rezult of similar-exchange operations taxable turover
is calculated as a difference between purchase and realization price excluding
realization expenses. When performing work (rendering services) for one's
own needs for the purposes, which are not connected with the production
activities, the taxable turnover shall represent a sum of expenses, incurred
by a taxpayer, that are connected with the performance of work (rendering
of services) less material expenses. The taxable sum shall not include
the value of reusable tare, except when manufacturers realize their tare
initially and pay the tax for it according to the general rules. A sum
of the value added-tax shall be included into a disbursing price of goods
(work, services). The established amounts of trade and wholesale discounts,
trade extra charges (increases, additions) shall be applied to prices with
due account of a value added-tax. The taxable turnover of building, erection
and repair organizations shall represent a value of erection and repair
work less material expenses. For insurance organizations insurance sums
and insurance indemnity, deductions to the reserve funds and funds of preventive
measures are not included in a taxable turnover. When goods (work, services)
are supplied to be exported from the Republic of Belarus, the sum of the
value-added tax shall be shown on a separate line in payment documents.
ARTICLE 4. TAX RATE.
The rate of the value added tax shall be fixed at following amounts:
a) 10% - for collective farms, state farms, peasant farms, intereconomy
enterprises and organizations, agricultural cooperatives, agricultural
part-time units, other agricultural units in case of realization their
own plant-growing production (exept flowers, decorative plants) and stock-raising
production (exept fur-breeding), fish-breeding and bee-farming production.
b) 20% - for other products (work, services) including excisable food-stuffs.
Goods (work, services) to be exported from the Republic of Belarus is free
from value added tax excluding bank, insurance, financial services and
exchange of commodities (barter operations). Exchange of commodities (barter
operations) connected with obtaining of complete units, materials for productive
activity, and technique equipment for basic funds renewal are free from
value added tax.
ARTICLE 5. TAX PRIVILEGES.
The value-added tax shall not be applied to: 1) services of the municipal
passenger transport, as well as passenger transportation services, rendered
by local water, rail and road transport; 2) turnovers, connected with destatization
and privatization of state property; 3) work, financed from the budget
of the Republic of Belarus; 4) construction and repair work, performed
for socio-cultural and production purposes , using the self-supporting
method; 5) services, rendered to the population: housing and communal services
(including rent); 6) issue and transfer of loans; 7) operations (including
deals), covering deposits, current accounts, payments, transfers, bills
and other securities; 8) operations (including transfers), covering currency,
money and bank notes, that are legitimate means of payment, with the exception
of collection coins. The collection coins are coins, made of gold, silver
and other metals, which are not used as legitimate means of payment and
are of interest for the numismatics; 9) communication services rended for
the population, newspapers and magazines subscription delivery. 10) operations
with securities (shares, stocks, bonds and others), except the operations,
related to the keeping and issue of securities, subject to taxation; 11)
sale of postage and duty stamps at nominal value; 12) excluded 13) excluded
14) excluded 15) services, rendered by commercial polyclinics, doctors
and veterinarians; 16) services, related to the care of children in nurseries,
and kindergartens as well as the care of patients and aged people; 17)
paid services in the sphere of education and upbrining process in educational
institutions of system of education accredited in the proper order. 18)
theatre performances, shows, sport events, cultural and educational programmes,
including video shows; 19) services of lawyers and legal consultation offices,
rendered to the population; 20) ritual services, rendered by undertaker's
offices, cemeteries and crematoriums; 21) enterprises belonging by the
right of ownership to invalid societies and enterprises using labour of
invalids and superannuation pensioners, wherein the number of invalids
and superannuation pensioners constitutes not less than 50 per cent of
the mean listed number of their production personnel, as well as enterprises
using labour of school-children, students of secondary special educational
institutions and vocational schools under the age of 18, students of day-time
departments of higher educational institutions, if their number in the
mean listed number of production personnel constitutes at least 80 per
cent, - what concerns the realization of their own products, repair and
induvidual sewing of footwear, watch repair, domestic equipment, videodemonstration
with deaf-and-dumb interpretation, enterprises belonging to to the Byelorussian
Society of Invalids, to the Byelorussian Society of Deafs, to the Byelorussian
Association of Sight Invalids, - what concerns the realization of their
own goods (work, services) exept turnover of commertial and intermediate
activities. 22) repair and restoration work, aimed at restoring the monuments
of history and culture of Belarus; 23) production of instruments and equipment
used for measuring radiation levels and irradiation doses; 24) production
of goods for children: clothes, headgears, foot-wear made of all kings
of materials, knitted garments, hosiery, gloves and mittens, literature
for children, school manuals, copy-books, linen for new-borns, satchels,
bags (exept sport ones), bed accessories when they are supplied by manufactures
to the users of Republic of Belarus. 25) construction work ordered by the
population, house-construction cooperatives and garage-construction cooperatives;
26) selling of seeds and fodder to the producers of agricultural produce
within the Republic of Belarus, including private production of citizens;
27) selling of fuel (firewood, peat bricks, coal, gas) to the population
of the Republic; 28) excluded 29) medical equipment when they are supplied
by manufactures to the users of Republic of Belarus and medicine production.
30) work and services connected with erection and reconstruction of religious
objects which are implemented using donations. 31) traditional folk hand-made
arts. 32) sanatoria and health resorts vouchers realisation and vouchers
to health camps to the population of the Republic of Belarus. 33) realization
of scientific research works for the users of the Republic of Belarus on
the base of proper expert conclusion. List of establishments and organizations
eligible to examine contracts for scientific research works and experimental
engeneering works, registered in the state list in the order determined
by the Cabinet of Ministers of the Republic of Belarus. 34) services connected
with education of children and teenagers at study groups, sections, studious,
musical schools. 35) services of ..?. departmental security of Ministry
of Internal Affairs of the Republic of Belarus. 36) toy production from
polimer and plastic materials. 37) excluded 38) excluded 39) excluded 40)
the cost of goods and services intended for official activities of foreing
diplomatic representatives and also for personal using of diplomatic and
administrative and technical personnel of these representatives including
their families, living together, in case of reservation the principle of
reciprocity by the states on which territory these diplomatic representatives
are situated. 41) realization of goods by duty-free shops in customs controle
zone. 42) realization of critical goods by the seller who brought them
from abroad under the list determined by Council of Ministers of the Republic
of Belarus. 43) collective farms, state farms, peasant farms, other agricultural
units and agricultural part-time units of enterprises and organizations
for food production (exept excisable one) produced by them in their part-time
workshops and works situated in rural areas on the lands belonging to these
colective farms, state farms peasant farms, other agricultural units and
agricultural part-time units of enterprises and organizations. The value-added
tax shall not be included into the disbursing price of goods (work, services)
enumerated in the present Article. When goods, which are not subjected
to the value-added tax in accordance with the present Article, are realized
to be exported from the Republic of Belarus, the amount of tax due to the
budget shall be determined proceeding from the value of the realized products
and the established tax rate. Services of production and repairing clothes
and footwear, watch repairing, fixing of complicated domestic technique
and radioelectronic equipment, services of hairdressers, Russian baths,
laundries are taxed at the rate reduced to 50 %. The list of goods, work
and services, exempted from the value added tax, shall be common for the
entire territory of the Republic of Belarus.
ARTICLE 6. PROCEDURES FOR CALCULATING TAXES AND TIMING OF THEIR
PAYMENT 1.
Value added tax is calculated and paid with progressive total since
the begining of the year and included into the budget of the Republic of
Belarus. 2. Tax payers submit their calculated amounts of value added tax
intended for payment to the budget to tax authorities according to the
established procedures. 3. Legal persons pay the value added tax to the
budget according to the following procedures: a) for the tax sum for previous
month exceeding 5000 minimum wages within three working days upon completion
of the turnover on the base of real dialy turnover and average per cent
retirement of previous month. b) for the tax sum for previous month from
2500 to 5000 minimum wages - every ten-day period on the base of real ten-day
period turnover and average per cent retirement of previous month. c) for
the average monthly tax amount of up to 2500 minimum wages mounthly proceeding
from the actual value added for previous month and tax rate. Payers mentioned
in items "a" and "b" of this item make tax recalculations
for every previous month proceeding from actual value added of this month
and tax rate. 4. Enterprises that manufacture goods, perform work and render
services that are not subject to the value added-tax shall settle their
accounts with buyers without this tax. Amounts of the value added-tax paid
to suppliers shall be referred to the production and circulation costs.
Tax payment time shall be fixed by the Ministry of Finance of the Republic
of Belarus.
ARTICLE 7. PECULIARITY OF TAXATION OF OWNERS CARRYING OUT THEIR ACTIVITIES
WITHOUT FORMING THE LEGAL PERSON
Owners carrying out their activities without forming the legal person
pay tax in the case of receipt exceeding 250 minimum wages per month. Tax
shall be payed to the budget on the base of real turnover of last month
and tax rate. For tax calculatings the taxable turnover shall be fixed
as in the case of legal persons.
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