Taxable Persons

Art. 3.

(1)

A taxable person, within the meaning of this Law, is any person who independently carries out any economic activity, whatever the purpose or results of that activity.

(2)

The following persons shall not be considered taxable persons within the meaning of this Law:

1. The state, central and local government authorities in respect of the activities or transactions in which they engage as public authorities, even when they collect state or local taxes or fees in connection with these activities or transactions;
2. Natural persons in respect to their activities on the basis of employment contracts;
3. Natural persons who are not sole proprietors in respect to their activities regulated by law in connection with the management and supervision of legal entities.

(3)

Without prejudice to the provisions of par. 2, the state or the central and local government authorities shall be considered taxable persons under this Law where:

1. the supplies they engage in will lead to significant distortions of competition in respect to the independent economic activity performed by taxable persons under this Law;
2. they engage in any of the activities listed in the Regulations on the enforcement of this Law.