For the purpose of aiding the economy by improving the existing business management systems, the Institute for Youth Development KULT, together with the members of the Network for creating a better business environment in BiH, is advocating to introduce changes in the Law on Value Added Tax, according to which the taxpayers would pay the VAT after charging for the provided services and delivered goods, and not after issuing an invoice.
The changes of Law on VAT in Bosnia and Herzegovina are necessary, and this was concluded today at the “Supplements and amendments of Law on VAT – Introducing the system of charging VAT according to collected receivables” Round Table.
The deadlines for paying VAT to the state have to be prolonged to the final day of the month, as concluded at the Round Table. An Economic Expert and Round Table panelist Svetlana Ceni? added that the changes in the taxation system have to be approached strategically and at the level of changing the whole financial system in BiH. This primarily indicates, as she emphasized, to change the VAT system in distribution and changing the Law on Fiscal Liability. It is necessary, she added, to coordinate the fiscal system at state level and with tax and geodetic administrations.
In his address, Mladen Pandurevi?, the Director of Employers’ Association of FBiH, emphasized that, in addition to these changes, it is necessary to insist on terminating the rights to VAT deductibles for unpaid invoices.
In accordance with the current Law on Value Added Tax, taxpayers are obliged to submit a return and pay the VAT from the 1stto the 10thof each month on completion of the tax period, regardless of whether or not they have charged for their goods-and-services-based demands, which makes many of the business subjects insolvent.
Strengthening of the economy is necessary for the economic prosperity of BiH and precisely the development of small and medium firms represents an opportunity for youth.
As emphasized during the Round Table by Jasmin Beši?, the Executive Director of the Institute for Youth Development KULT, the Institute has so far been working very successfully on development and implementation of solutions that contribute to improving the social position of youth. “Considering that economic issues are a source of most youth issues, the Institute wants to include professional and other public in dialogue related to creating a better business site in BiH, not just for youth, but also for all business owners” emphasized Beši?.
By introducing changes in the Law on VAT, the development of small and medium entrepreneurships can be additionally incented, along with the improvement of the investment climate.
The implementation of the stated procedure is not obligatory and taxpayers may decide for themselves whether they will implement the procedure of charging VAT according to collected receivables or not.
The Round Table was attended by representatives of the Indirect Taxation Administration, members of BiH Parliament, economic representatives, academic and NGO sector representatives and representatives of other relevant organizations and institutions.
The Round Table will be organized as a part of the “BH Business Site” initiative, managed by the Institute for Youth Development KULT and which is the part of Civil Society Sustainability Project in Bosnia and Herzegovina (CSSP), realized by the Centers of Civil initiatives (CCI) and the Center for Promoting the Civil Society (CPCD) and supported by the US Agency for International Development (USAID).
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