Confirmation letter

-3810 428625 0 0 1076325 9772650 TALLINN UNIVERSITY OF TECHNOLOGY Ehitajate tee 5 19086 Tallinn, Estonia Registry code 74000323 Phone +372 620 2002 E-mail [email protected] www.taltech.ee 0 0 TALLINN UNIVERSITY OF TECHNOLOGY Ehitajate tee 5 19086 Tallinn, Estonia Registry code 74000323 Phone +372 620 2002 E-mail [email protected] www.taltech.ee 5873115 428625 0 0 European Education and Culture Executive Agency Our ref Confirmation letter According to subsection 2 (2) of the Value-Added Tax Act , the activities of legal persons in public law are deemed to be business only where such persons engage in economic activities listed in Annex D to the sixth Directive or where their activities involve transactions and acts listed in subsection 1 (1) of the Value-Added Tax Act which may also be performed by other taxable persons and where non- taxation would lead to significant distortions of competition . Tallinn University of Technology has been registered as a person liable to value added tax and upon deduction of input value added tax we use the method combining direct calculation and proportional deduction . Receipts from research and development projects are not deemed to be economic activities of Tallinn University of Technology. Input value added tax is not deducted on goods and services ( except on fixed assets ) purchased for the purposes of such activities . Consequently , no refund is paid by the Tax and Customs Board , the input value added tax is written off . Upon acquisition of fixed assets , Tallinn University of Technology uses the method of proportional deduction for deduction of input value added tax . This means that a proportion of the value added tax is reclaimed from the Tax and Customs Board and the rest is written off . The activities carried out in the framework of the project „ Be Competent in Entrepreneurship : Knowledge Alliances for Developing Entrepreneurship Competencies for the Benefit of Higher Education and Business “ are not economic activities of Tallinn University of Technology, these are regarded as research . Thus , the input value added tax on purchases related to this project is written off . Yours sincerely Ave Tamm Chief Accountant