The amount of VAT returns owed by the state to the private sector reaches one billion euros, yet another factor asphyxiating domestic markets amid an ongoing credit crunch, capital controls and a still recession-plagued economy.
The amount of VAT returns owed by the state to the private sector reaches one billion euros, yet another factor asphyxiating domestic markets amid an ongoing credit crunch, capital controls and a still recession-plagued economy.
The growing arrears, on the state’s part, bodes ill for meeting income tax and corporate tax targets, as individual taxpayers and legal entities are weighing the option of paying tax burdens on time at the same time when the state isn’t returning VAT rebates in a timely manner.
According to reports, the average duration for issuing income tax rebates – in 42 out of 111 tax bureaus – begins at one year, and reaches even five years.
In terms of VAT returns, which primarily affect export businesses, even a recent law mandating payment by the state within 90 days appears to have gone by the wayside, as the average period for payment extends more than a year, 294 days to be precise.