The Peasants Will Pay VAT

The peasants that sell products at the market will have to abstract themselves Value Added Tax (VAT) starting from 2006. The measure is expressly asked even by the EU. Following the negotiations regarding the Taxation chapter we have engaged to give up on the VAT acquittal for the individual agricultural households, stated Maria Manolescu, Secretary of State in the Ministry of Public Finances. She added that there have also been commercial companies that complained about the fact that the individual producers are in an unfair competition against them since they are not VAT payers. "However, these companies forget to mention the advantages. They can abstract VAT on seed, chemical fertilizers, gas etc".

PROCEDURE. Anyway, in order to become VAT payers, the peasants will have to be taught to come to the market having with them the top of fiscal bills or the receipt machine. "A civilized commerce means the existence of the official papers", stated the Finance official, but he added that in the following period the Finances will look for a simplified procedure for the VAT abstracting in the case of the peasants.

REACTIONS. The agricultural producers say this measure is normal, will arrange the market and facilitate the appearance of gross markets. "Now, the peasants lose. They buy seeds or fertilizers for which they pay VAT, but the finite products are sold without. So, the requirement of the VAT abstraction is in their advantage. The ones affected by this are the consumers, who will pay higher prices for the vegetables and fruits bought from the markets", stated Alexandru Radulescu, the president of the Private Farmers Association League in Romania. Applying this measure will be difficult. "It’s going to be hard to convince the peasant he has to pay VAT and fill out bills for the cucumbers he sold at the market. He will ask you to tell him the meaning of VAT", believes Stefan Niculae, president of the AGROSTAR syndicate. "They will all be guilty of tax dodging without wanting that, since there will be a while until they learn all the rules", he added.

SOME OTHER VAT PAYERS

Not only the peasants will become added value tax payers. According to the matching schedule of the VAT exempts, also in 2006, the import of movie and programs for the radio and TV broadcasting licenses will be VAT carriers.

All the same, starting from 2007, the list will become much longer. The production of the movies for TV broadcasting, the fluvial shipment of the inhabitants of the Danube Delta, the transfer operations for the property right form the debtor to the Office for the Recovery of the Banking Book Debts, merchandising of the products made by the imprisoned people, the research and development work will be added.