Waiting for Reaction of Authorities to Proposal of Changing Law on VAT

Institute for Youth Development KULT addressed the initiative to change the Law on VAT to the Bord of Directors of the Indirect Taxation Administration.

It is an initiative that the Institute uses to advocate for changes in the Law on Value Added Tax that would result in:

  – the taxpayers paying for VAT according to chared and not issued invoice for delivered goods and services and have the right to input tax deduction after paying for the delivered goods and services to their suppliers;

    – the VAT payment deadline would move from the 10^th to the last day of the month for the previous month.

The changes relate to taxpayers whose annual turnover of goods and services (without VAT) does not exceed 1 million BAM.

The initiative started in the beginning of March, 2016 and has so far been supported by over 30,000 business owners gathered around chambers of economy and crafts and by associations that focus on aiding the economy.

These changes are supported by the Chambers of Crafts of Central Bosnia, Tuzla, Zenica-Doboj, Una-Sana, Posavina and Sarajevo Canton, the Chamber of Economy of Sarajevo and Banja Luka, Mostar, the Chamber of Economy of Bosnian-Podrinje Canton of Goražde, Chamber of Economy of Tuzla Canton, Una-Sana Canton, Zenica-Doboj Canton, Chamber of Economy of FBiH, “Kupujmo i koristimo doma?e” (“Buy and Use Domestic Products”) Association and the Association for Improving Economic Relations between Germany and BiH, the Association of Employers of FBiH and individual business owners.

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.

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).