Nezavisne novine: The Management Board of the Administration for Indirect Taxation of BiH will not support the abolishment of the VAT on donations, although that is a demand by the European Commission for de-blockade of using around 50 million Euros of the Pre-Accession Assistance for BiH.
"Practice of the EU is to return the VAT on donations, which we have accepted as a solution which has been integrated in the Law on the VAT. Abolishment of the VAT would be opposite to the European principles and I do not know why the EU asks for it", says Miodrag Kudić, member of the MB of the Administration for Indirect Taxation of BiH.
He claims that freeing the donation from the obligation of paying the VAT has brought to the misuses.
The European Commission has stopped the tender procedures for the projects financed from the Pre-Accession Assistance (IPA) for 2007. Realization of almost 50 million Euros as it is non-refundable assistance of the EU to our country for 2007 has been blocked. The European Commission is dissatisfied by the return of the VAT and now it asks freeing the donations from the obligation of paying this tax.
"If the problems with the return of the VAT exist, then they should be solved by the Administration for Indirect Taxation of BiH. I do not see neither one reason why the VAT should be late", says Kudić.
The Parliament of BiH cannot impact on this attitude of the MB of the Administration for Indirect Taxation of BiH.
"We are aware of heaviness of problems, but the Law on System of Indirect Taxation puts the MB of the Administration for Indirect Taxation above the Parliament. For each change of the Law, we must ask for their agreement", explains Beriz Belkić, deputy Chairman of the House of Representatives of the Parliament of BiH.