The current definition of turnover specifically uses the terms “income” and “revenue”, which results in unequal conditions for taxpayers who operate under accrual basis accounting (double-entry bookkeeping) and cash basis accounting (single-entry bookkeeping). These terms are replaced by the phrase ”the value of delivered goods and services”, which means that turnover includes the value of all delivered goods and services in accordance with §22 (1) of the VAT Act at the time of their delivery.
Under the new definition contained in the VAT Act, those taxpayers using cash basis accounting do not include payments received before the delivery of goods or services in their turnover. Such received “advance payments” represent a portion of the value of such goods or services and are included in the turnover over the calendar month in which the goods or services were delivered.
In connection with this change in definition, the terms revenue (income) excluding tax in §50 (2), Coefficient calculation, is replaced by the phrase “value excluding tax of the delivered goods and services”.