VAT reimbursement in agriculture, Ministries confront each other

03/08/2015 00:00

The encouraging package that the majority posted by the end of the past
year, changed the VAT chain links in the trading of basic products,
recognizing a 20% tax from 6% that it used to be.

This move was correcting a stalemate created in the domestic market, with sellers having a 6% tax recognized in purchases but they had to pay a 20% tax for sale.

The unification has created a new stalemate. Will the 20% reimbursement for expoort be recognized? This issue has turned into a debate between the Ministry of Agriculture and the Ministry of Finances.

On June 4th, seven months after the package was reviewed, the Ministry of Agriculture wrote to the Ministry of Finances that the package does not have the VAT reimbursement for agricultural purposes, since those products were excluded from the VAT in sales.

According to the Ministry of Agriculture, if the tax office would have been able to reimburse 20% of the agricultural export value, that would be a very clean subvention, far from the spirit of the agricultural package, and not in the new confrontations with the law.

However, the Ministry of Agriculture says the state budget was very high and it reached dozens of millions.

But after this interpretation, the Ministry of Finances said that the right to reimburse the export product is an unchangeable principle that in function of VAT. For thi reason they cannot agree with the opposition.

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