Procedure for the VAT taxation of second-hand goods

Procedure for the VAT taxation of second-hand goods Under the Value Added Tax Act, a special taxation arrangement may be applied to the resale of second-hand goods, original works of art, collectors' items and antiques. This applies only if the goods were purchased for resale, not for own use. Section 41 of the Value Added Tax Act (KMS) gives the taxpayer the option to choose whether or not to apply the special taxation arrangement. Among many entrepreneurs this continues to raise questions as to how and […]

Employment contract, contract for services or authorisation agreement – which one to choose?

Employment contract, contract for services or authorisation agreement – which one to choose? When applying for a job, we come across different types of contracts – these may be an employment contract, an authorisation agreement or a contract for services. Regardless of whether you are an employee or an employer, it is worth familiarising yourself with the similarities and differences between these contracts.It is worth noting that these three main types of contract have the same purpose – this means that one […]

Finance lease and operating lease

Finance lease and operating lease Finance lease and operating lease – what is the difference between them? The terms operating lease and finance lease come up when you have decided to lease some kind of asset. Before deciding which lease agreement to choose, it would be useful to understand the difference between them. It is also important to know how to recognise the respective lease agreement in the accounts. Operating lease An operating lease is a sensible choice when you do not […]

Changes in legislation in 2023

Changes in legislation in 2023 Every year there are changes in legislation and regulations, and as the field of accounting requires precision, thoroughness and keeping up with changes, it is important for accountants, financial managers and company executives to have an overview of the latest changes and upcoming developments as they head into the new year. Below, we look at which legislative changes enter into force in 2023. 1) The basic exemption rises from 500 to 654 […]

VAT ON IMMOVABLE PROPERTY AND ITS COMPLEXITIES

VAT ON IMMOVABLE PROPERTY AND ITS COMPLEXITIES Real estate accounting is rather complicated and has its own specific rules and exceptions that must be taken into account. There have been many situations where one party does not know what they are doing, which leads to many errors, retrospective tax liabilities or even situations where the seller pays VAT but the buyer cannot […]

The most common tax incentives for motivating your employees

A list of the most common tax incentives for motivating your employees While the working environment offered to the Employee and work performance are important to the Employer, for the Employee the most important thing is still the remuneration received for the work. Many Employers do not know that, in addition to offering a pleasant working environment and good pay, there are other ways to motivate an Employee. For example, the Employer can offer a motivation package that is […]

Amendments to the Employment Contracts Act from 01.08.2022

Amendments to the Employment Contracts Act from 01.08.2022 From 1 August 2022, amendments to the Employment Contracts Act enter into force. As a result, the Employee must be given more information about their rights than before. Below we look at what these changes are: PROBATIONARY PERIOD: Previously, the Employer only had to notify the Employee of the probationary period in writing if the probationary period was shorter than four months; from now on, the Employee must be notified of the probationary […]

Taxation of company cars and compensation for the use of a personal car

Taxation of company cars and compensation for the use of a personal car When a car is taken into company use, the most important thing is to determine whether it is an N or M category vehicle and then whether it is a 100% company car or whether the car is also used for private journeys in addition to business journeys. Below we look at the rules that apply to an M category car when it is used 100% […]

Employee holiday

Employee holiday. Length of holiday for full-time work Every employee is entitled to annual holiday. According to §55 of the Employment Contracts Act, an employee's annual holiday is 28 calendar days (annual holiday), unless the employee and the employer have agreed on a longer annual holiday or the law provides otherwise. A calendar day means every day from Monday to Sunday. It is important to note here that annual holiday does not include the national […]

Parental benefit system from 1 April 2022

Parental benefit system from 01. 04. 2022 From 1 April 2022, when the system for taking child leave changes under the Employment Contracts Act, all parents will become entitled to ten working days of paid child leave for each child under the age of 14. It is important to bear in mind that the ten working days are not an annual additional leave, but a one-off leave from the end of parental benefit until the child turns 14. Ten days for each […]