Politics isn't helping: Still no concrete proposals for VAT to be paid at the end of the month

Chairman of the Council of Ministers Denis Zvizdić recently stated that he expects the request of a large number of businessmen in BiH to extend the VAT payment deadline to the last day of the month, as well as to reduce the daily default interest rate, to be incorporated into the amendments to the VAT Law.

We remind you that this initiative for amending the VAT Law was submitted by SDP BiH MP Saša Magazinović and presented in cooperation with the Kult Institute, proposing the introduction of a system for paying VAT based on collected invoices rather than issued invoices. The Management Board of the Indirect Taxation Authority rejected it with a brief and contradictory explanation that the proposed system is unacceptable.

Zvizdić later stated that he supports such requests from businessmen, as he believes they are justified, will lead to an improvement in the business environment in BiH, that extending the VAT payment deadline will improve company liquidity, and that reducing the default interest rate will significantly reduce costs and facilitate business operations.

However, there are no concrete steps, so it is unclear for now when such a proposal might be on the agenda of the BiH Parliament.

There are no concrete proposals from the Indirect Taxation Authority (UIO), although Zvizdić also stated that the UIO should act in accordance with the defined guidelines of the Council of Ministers as soon as possible and create the necessary preconditions for the introduction of electronic payment of VAT and direct taxes.

It has been three months since the initial idea for such an arrangement of the VAT system, but the UIO has done nothing. It is evident that the Council of Ministers will have to send another "order" to the UIO to prepare such a proposal.