The Senate Wants To Help Companies With VAT Paybacks, But Decision Not Final

The Senate pushes forward with changes to the Fiscal Code that were long awaited for by the business community. Ten days ago it decided for the state to pay back the VAT to companies within 30 days. Yesterday it decided to the state to cash the VAT from companies when their transactions are paid for, not when the invoices are issued, as is the current practice.

The Senate legislative initiatives are not final, as the House of Deputies is the final decision making body on fiscal matters. The Executive strongly opposes these moves, as it envisages new financial strains on the budget.

But the business community never stopped from asking for these changes, in the absence of which it said the state was chocking off private companies.

The figures show that the state owes companies 1.5 billion Euro, of which some 900,000 Euro in VAT paybacks to companies that it did not make, and the rest in money owed to public procurement contracts. At the same time, companies owe fiscal authorities some 4.5 billion Euro.

Translated by AAP