Section 6: Special schemes

§ 23a Average rate for corporate bodies, associations of persons and estates within the meaning of § 5 paragraph 1 number 9 of the Corporate Tax Act

(1) For the purposes of calculating the input VAT deductions (§ 15), an average rate of 7 percent of the taxable turnover, excluding imports and intra-Community acquisitions, shall be set for corporate bodies, associations of persons and estates, within the meaning of § 5 paragraph 1 number 9 of the Corporate Tax Act, which are not obligated to keep an accounting nor required to prepare financial statements based on annual inventory takings. Any additional input VAT deductions shall be excluded.

(2) A taxable person, whose taxable turnover, excluding imports and intra-Community acquisitions, exceeded Euro 45,000 in the previous calendar year, cannot apply the average rate.

(3) The taxable person who meets the requirements with regard to the application of the average rate may submit a declaration to the tax authority, at the latest, by the tenth day following the expiry of the first preliminary VAT return period of a calendar year stating that he wishes to apply the average rate. The declaration shall be binding on the taxable person for at least five calendar years. It may only be cancelled with effect from the beginning of a calendar year. Notice of cancellation is to be given, at the latest, by the tenth day following the expiry of the first preliminary VAT return period of the current calendar year. The average tax rates may only be re-applied, at the earliest, after the expiry of five calendar years.