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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