Within the regime of the tax liability transfer when delivering selected kind of goods or when granting the selected service between two VAT payers in inland, the value added tax is not declared by the supplier who provided the supply, but this duty is transferred to the recipient of this supply. In other words, when applying the regime of tax liability transfer, the value added tax is paid to the state instead of by the supplier directly by the consumer. The consumer may then, when the statutory requirements are met, claim this value added tax.

Within the amendment to the VAT Act in the year 2015 this regime of the tax liability transfer was extended. The amendment to VAT Act stipulates that newly selected kinds of goods or provision of selected services stipulated by the government in the Decree, will be liable to the regime of tax liability transfer.

The General Financial Directorate has recently released information on the application of the tax liability transfer to selected supplies in years 2015 and 2016 following the government decree on stipulation of the supply of goods or provision of a service for using the regime of tax liability transfer, which was released at the end of the calendar year 2014 and which becomes effective for the most commodities from April 1st, 2015.

The information deals especially with the distinction of new supplies for the application of the regime of tax liability transfer, possibility of solving the cases of dispute when including the supplies, with advance payments before the regime of the tax liability transfer is launched and with corrections of tax base.