Small businesses in protest: Introduction of VAT increased taxes for us

Small businesses in protest: Introduction of VAT increased taxes for us
Tens of small businesses, which, starting from 1 April 2018, have been included in the Value Added Tax regime, held a nationwide protest yesterday. Claims: Cost of the cash registers, cost of fines have risen, local government taxes too along with the VAT charge which is not refunded to us and we will reflect this on prices…

They closed for two hours. Tens of small businesses around the country have decided to do this yesterday as a sign of protest against the introduction of the Value Added Tax regime, which has become effective starting on 1 April of this year. They argue that their private activity is becoming unaffordable from cost increases. They start with the added cost of the fiscal cash registers. “According to the new changes introduced about fiscal cash registered, every receipt which is issued to the customer, should read ‘incl. VAT’ on it. But, this change requires money. Every service that is provided by fiscal cash register companies has a cost. They don’t really care, because they want to make a profit”, representatives of small businesses told Albanian Free Press. Meanwhile, they also express their concern about the new cost concerning the accountant, which, according to them, will not have the same cost as before, because entering VAT receipts is a new process for them. They also say that being in the VAT regime, now imposes heavy fines on them should tax auditors discover discrepancies in their accounts.


Will the law have retroactive effect?!

Businesses: The effects started on 1 January 2018! Ministry of Finance: No, they started on 1 April!

Small businesses which are included in the VAT regime will pay extra local government taxes and starting from 1 January of this year, these taxes are different to what they used to pay before. This is another claim made by representatives of this category.

“Taxes for the environment, lighting or cleaning will now be different for us. In fact, this has taken effect on 1 January, because the law has retroactive effect. It means that it becomes effective on 1 January. Meanwhile, procedures for registration start on 1 April, but for large businesses they start on 1 January.”

Thus, when businesses go to the municipality, they will have to pay extra charges and the VAT starting January 1st”, they say. But, this is denied by official sources of the ministry of Finance. Officials of this ministry confirmed to Albanian Free Press that all the effects from the inclusion of small businesses in the VAT regime start on 1 April 2018.

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