Business Owners Daily Express Necessity of Changing Law on VAT

The action of signing a letter of support to introducing changes in the Law on Value Added Tax in Bosnia and Herzegovina is still ongoing.

In order to intensify the process of changing the Law on VAT, in April, the Institute for Youth Development KULT started the initiative of signing a letter of support for the process of introducing changes in the Law on VAT.

The letter of support was primarily intended for business owners and since the initiative started, it has been signed by over 20,000 business owners gathered around chambers of economy and crafts and by associations that focus on aiding the economy.The initiative was also supported by representatives of the Association of Employers of FBiH that has around 25,000 members with over 100,000 employees.

Among the signatories are representatives of the Chamber of Economy and Crafts of the Sarajevo Canton, the Chamber of Economy of Banja Luka, Chamber of Economy of Tuzla Canton, Chamber of Economy of Una-Sana Canton and numerous business owners who decided to individually support this initiative.

The Institute for Youth Development KULT advocates for introducing changes in the Law on Value added Tax according to which the taxpayers would pay the VAT after collecting their receivables and not by the 10^th of the month, as the current Law stipulates.

According to current legal provisions, the employers are obliged to pay for their taxes despite not having collected their receivables. This makes many business subjects insolvent and often forces them to terminate their business.

The Institute will continue gathering letters of support and advocating for changes in the Law on VAT with governmental representatives.

The letter of support is available on the following web-portal: www.podrzi.poslovniprostorbh.org.

Advocating for the changes in the Law is conducted 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).