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VAT Declaration, Economy: No Additional Burden

VAT Declaration, Economy: No Additional Burden

Small business with annual turnover over 2 million Lek that is included for the first time in the VAT declaration scheme will take only 10-15 minutes to send electronically VAT once in 3 months.

Milva Ekonomi, one of the most popular economic experts in the country at the same time MP of the Socialist Party, explains in a statement to ATSH that this group of small taxpayers who will enter the VAT scheme are now declaring a three-month statement of the insurance contribution and the personal income tax declaration for the employees they have.

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“In July of this year will be added a new statement, VAT statement which will be submitted as the first two electronically once every three months. So even if it is not able to do its own small taxpayer, logically the cost of a new statement that takes 10 to 15 minutes of time to send should not be high, “Ekonomi explained.

While regarding the obligation to keep the sales records, which serves to complete the declaration, according to Ekonomi, even yesterday, without VAT, these small taxpayers had a legal obligation to keep the invoices for the purchase of goods, to record the turnover daily, monthly, quarterly with cash register.

“In terms of keeping the documentation, there is no additional burden for this group,” Ekonomi said.

By reducing the threshold to 2 million Lek, the majority of businesses that will be involved in the scheme are entities that trade in retail goods. These entities pay for the purchase of goods that will resell the VAT, which they will totally lend.

While small businesses in the field of handicrafts and services, which do not have cargo purchases, but their turnover is mainly live work, will remain outside the VAT scheme. (barber, tailor, repairer, mechanic, electrician, plumber etc.). Over 60,000 such businesses are outside the VAT scheme.

“VAT is a tax paid by the customer, not the business that sells goods and services, the reduction of the threshold and the inclusion of taxpayers in the scheme, is a measure aimed at controlling the transaction chain,” says Ekonomi.

The threshold cut, she said, has not been and is not envisaged as a measure to increase VAT revenue from this small taxpayer group.

In most cases, according to her, these taxpayers will be presented with credit surplus due to the VAT paid for goods in their units. Ekonomi ensures that there will be few instances requiring reimbursements.

“In this transitional period, small businesses have the right to lend to VAT, and the small business taxpayer registered in the VAT has the right to credit all the VAT paid on the purchase of goods and services, to lend VAT to goods purchased in 12 months past and having business status and reimbursed if there is a credit balance at the end of the month, “Ekonomi said.

News Source: ATA

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