UPFBiH and UPRS continue to insist on moving the deadline for VAT payment to the last day of the month

(Patria) - The Employers' Association of the Federation of Bosnia and Herzegovina and the Union of Employers of Republika Srpska welcome the decision of the delegates of the House of Representatives and the House of Peoples of the Parliamentary Assembly of Bosnia and Herzegovina to adopt amendments to the Law on Value Added Tax of Bosnia and Herzegovina, which increases the threshold for mandatory registration in the VAT system from the current 50,000 to 100,000 KM.

"In this way, the operations of micro and small enterprises in BiH are significantly simplified and facilitated. However, we must express disappointment that the amendment to the BiH VAT Law, which provides for VAT payment on the last day of the month instead of the 10th of the month, as is currently the case, was not adopted. We repeat again that the current deadline is too short for some taxpayers, especially if this period includes two weekends and a holiday, and if the taxpayer fails to submit the return within the legally prescribed deadline, they pay default interest," state the UPFBiH and UPRS.

The UPFBiH reminds that in the document "What Employers Expect from the Authorities," sent last year before the elections to all political parties, a proposal for amendments to the VAT Law was submitted, aimed at facilitating the operations of business entities in BiH, strengthening the competitiveness of the BiH economy, and harmonizing tax policy in the area of indirect taxes with the countries of the region and European Union member states.

Among other things, the employers' proposal is that amendments to the VAT Law abolish the right to input VAT for unpaid invoices.

The UPFBiH and UPRS emphasize that they continue to insist on the revision and improvement of the VAT Law.

"We will continue to insist on the adoption of our proposals regarding moving the deadline for VAT payment to the last day of the month and abolishing the right (or obligation?) to input VAT on unpaid invoices. We expect these amendments to be brought before the delegates and representatives of the Parliamentary Assembly of Bosnia and Herzegovina again in the first half of next year," say the UPFBiH and UPRS.