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Have you ever asked yourself: How did VAT arise, Could the EU countries meet the competition by different tax rates, Is the VAT reverse charge system fair to all member countries, How is your country profiting from EU VAT concept and other similar questions connected to value added tax? If you want to know the answers, read on. As everyone knows, VAT belongs to indirect taxes. Indirect because it is imposed on consumption, no matter what goods or services (with exceptions naturally) you purchase and who it purchases. So called VAT taxpayers (registered to VAT) are simply tax collectors for the government and hence indirect tax collecting. Brief history of VAT EU’s VAT framework proceeds from other former indirect taxes, that had nature of consumption taxes imposed on particular goods such as sugar, wine, etc. (in the past called octroi or excise tax). Often were these taxes even collected as tax in kind. Harmonization within EU Since establishment of European Community is clear, that within integration of Europe, it is essential to co-ordinate and integrate taxation and tax system in general. Crucial step in harmonization of indirect taxes was issuing First European Council directives (nr. 67/227/EEC) in 1967. In this directives EU member states pledged to implement so called “general consumption tax” to their tax systems on or before 1.1.1970. This deadline was later postponed and the whole new VAT framework actually started on 1.1.1973 (the last count...

Author: Ing. Mgr. Jaroslav Schulz

New Blog start up
27.05.2012

With refreshing our website we are also starting up new blog. We would like to present you usefull actual information not just for your business. At the same time we hope that this blog will prove you our high professional knowledge and expert abilities in the field of tax, accounting and company consultancy, but also in the field of macroeconomics, financial markets, etc. In case of any questions or reactins to our articles, please do not hesitate to contact us by contact form or directly by email inca@inca.cz. In the same way you can also send us your suggestions of new topics and articles.

Author: Ing. Mgr. Jaroslav Schulz