The Institute for Youth Development KULT intensively advocates for introducing changes in the Law on VAT. The action of signing the letter of support to changes in the Law on VAT of Bosnia and Herzegovina is ongoing and the letter of support has so far been signed by over 30,000 business owners gathered around chambers of economy and crafts and by associations that focus on aiding the economy.
The letter of support is primarily intended for business owners and among the signatories are representatives of the Chamber of Economy and Crafts of the Sarajevo Canton, the Chamber of Economy of Sarajevo, Banja Luka, Mostar, Tuzla Canton, Central Bosnian Canton, Una-Sana Canton and Posavina Canton. The initiative was also supported by representatives of the Chamber of Economy and Crafts of FBiH and RS, the Association of Employers of FBiH, â€śKupujmo i koristimo doma?eâ€ť (â€śBuy and Use Domestic Productsâ€ť) Association and the Association for Improving Economic Relations between Germany and BiH.
The changes of the Law on VAT are necessary according to the statements of Miro DĹľakula, the Director of Agency for Indirect Taxation of BiH, who discussed the problematics at the recently held â€ś2016 Jahorina Economic Forumâ€ť. As he stated, the VAT in BIH is based on 6th EC Directive that was placed out of force, and the 112 Directive is key for the VAT tax in the EU, so our country will have to change the Law on VAT in accordance with the EU accession process.
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 10th of the month, as the current Law stipulates. The changes would also refer to resloving the issue of right to deduction of input VAT.
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 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).