KULT warns: Around 30,000 businesspeople awaiting Council of Ministers' response on VAT Law amendments

Around 30,000 businesspeople in Bosnia and Herzegovina, who support the initiative for amendments to the VAT Law, are still awaiting a response from the Council of Ministers, the Indirect Taxation Authority, and the Management Board of the ITA regarding amendments to this law, after Saša Magazinović, MP of SDP BiH in the Parliamentary Assembly of BiH, proposed the initiative from the Institute for Youth Development KULT and forwarded it to parliamentary benches.

Why are the authorities, all those elected to work for young people, businesspeople, pensioners, and all citizens of this country, once again failing to react, KULT asks. They remind that before MP Saša Magazinović recognized the importance of the initiative and sent it to the BiH institutions, the Institute had sent the initiative for consideration to the Management Board of the Indirect Taxation Authority of BiH, but, they claim, any reaction and response was absent.

KULT's initiative seeks amendments to the Law concerning the introduction of a system where businesspeople pay VAT to the state only after they have collected payment for the invoice issued to their customer, and not just upon issuing that invoice. This aims to help small businesses, not large corporations and enterprises that are among the largest debtors for VAT payments to the state.

KULT claims that due to the current VAT Law, small businesspeople are forced to take out loans to pay VAT, and it is precisely because of such a law and numerous burdens that weigh down their operations that they are forced to close companies and businesses.

- Who needs such laws and ways of doing business in a country where we have over half a million unemployed, from which thousands of young, qualified workers and entire families are leaving – KULT asks.

- The initiative does not propose experimental solutions, but a system of VAT calculation based on collected invoices, which is in use in 22 EU member states, and is also applied by neighboring countries Serbia and Croatia – they further state, reports NAP.