Liability to pay tax mintaszakaszok

Liability to pay tax. According to Article 10(1) in Chapter III of the VAT Act, persons engaged in trade or business and liable to VAT registration, shall calculate and pay tax on sales of goods and services covered by the Act (4). It follows from the above that any undertaking carrying out an activity which does not fall within the scope of the VAT Act pays input tax on its purchases of goods and services but cannot charge output tax on its sales. However, when the State, municipalities and institutions which are owned or operated by the State or a municipality engage in activities falling within the scope of the VAT Act, they are subject to VAT in the same way as any other person engaged in trade or business on goods and services (5). These undertakings shall be registered in the VAT Register and calculate output tax on their sales. Accordingly, such underta- kings are entitled to deduct input tax but only on goods and services which are sold to others. Finally, as mentioned above, like any other undertaking, the State, municipalities and institutions owned or operated by the State may carry out activities which fall outside the scope of the VAT Act. When they carry out such activities which fall outside the VAT Act, they cannot charge output tax. Thus, they cannot, according to the VAT Act, recover input tax paid on their purchases of goods and services related to the said activity.