Magazinović: We are seeking an extension of the VAT payment deadline from the 10th to the last day of the month

Member of the Social Democratic Party (SDP) of Bosnia and Herzegovina in the Parliamentary Assembly of BiH, Saša Magazinović, spoke today about an initiative he, along with the Institute for Youth Development KULT, sent two months ago regarding the introduction of VAT collection based on collected invoices instead of the current system of collection based on issued invoices, reports the Patria news agency.

The initiative to change the VAT collection method is requested by tens of thousands of entrepreneurs of all nationalities and political affiliations. This should not be a politically colored initiative, but we should all engage together, primarily the Council of Ministers and the Indirect Taxation Authority, warned Magazinović, emphasizing that they had been waiting for a response for two months.

- 30,000 entrepreneurs are behind this initiative, and we asked the people from the Council of Ministers to step into the shoes of entrepreneurs and start thinking about how to help them operate as efficiently as possible, to listen, to understand... Finally, after two months of silence, we received a response stating that such a system is unacceptable, even though it exists in 22 EU countries and neighboring countries. They stated that this European Commission directive, which we referred to, may or may not be applied, and they chose not to. They also stated that the application of the VAT law and the introduction of the collection system based on collected invoices requires a different approach in processing and that they do not dispute the possible positive effects, but that it would be complicated and therefore they do not have the capacity nor do they want to. Also, one of the reasons for not wanting to enter this system is that such a model requires the introduction of a new information system - said Magazinović.

He added that he will continue to insist and argue further with all those in power that it is necessary to introduce VAT payment based on collected, not issued, invoices.

- We will visit a significant number of entrepreneurs in BiH where we will see their problems firsthand and based on that initiate problem-solving. Next week, we will have a new initiative, and it concerns the entrepreneurs' request to move the VAT payment deadline from the 10th to the 30th of the month - added Magazinović.

The SDP MP pointed out that they have not met a single entrepreneur who has not mentioned this as an urgent matter.

- We will seek the position of the Council of Ministers and the ITA. Unlike the first proposal, this one does not require the introduction of a new information system, the same human resources are sufficient, and it is not complicated. It will definitely have a positive impact on budget liquidity - added Magazinović.

Ajla Barukčić, an economic expert from the Institute for Youth Development KULT, explains that according to the current Law on Value Added Tax (paying VAT by the 10th of the month), it burdens entrepreneurs, but that they are encouraged by the ITA's response.

- Entrepreneurs point out that because of this, they take out loans, pay interest, and so on. The proposed system is not invented but is widely used in EU countries. BiH will have to be part of this system, which is very flexible in application - said Barukčić.