Saša Magazinović: Authorities exist for businesses, not businesses for authorities

The initiative to amend the VAT Law, presented by SDP BiH MP Saša Magazinović in cooperation with the Kult Institute, to introduce a VAT payment system based on collected, rather than issued, invoices, was rejected by the Management Board of the Indirect Taxation Authority with a brief and contradictory explanation that the proposed system is unacceptable.

In an attempt to explain that the proposed amendment to the VAT law, supported by over 30,000 businesses, is complicated to implement, they failed to explain how it is not complicated and how such a VAT collection system functions in most EU member states and in the countries of the region.

Following the negative stance towards the proposal for paying VAT based on collected invoices, Magazinović, again in cooperation with the Institute for Youth Development KULT, sent a request to the Indirect Taxation Authority for clarification on the initiative seeking to move the VAT payment date from the 10th to the last working day of the month.

This is also a request from businesses who believe it is the simplest way to offer some support to employers. They believe that extending the deadline would be a good gesture and a good decision by the current authorities, as well as the first step towards introducing a fairer VAT collection system than the current one, which practically means that businesses are providing interest-free loans to the state, and in return receive very little or almost nothing.

Although two months have passed since the launch of this initiative, the ITA's position is still unknown.

- Although most of those who make decisions have spent their working lives on the budget and do not understand the problems and needs of businesses, I still believe that there are those in the government structures who understand that the government exists not for those who participate in it to receive a salary, but to articulate the needs of those who elected them.

It would be great if the roles were reversed and the key obstructors in the implementation of European standards and the demands of BiH businesses tried to work in the real sector for just one month. Then they would understand how quickly a month passes, how difficult it is to collect money for salaries, contributions, and taxes, and especially how, despite all of that, to have the feeling that the state does not understand or does not want to understand your problems and help in solving them - said Magazinović.