Expert opinions and VAT issues
By Messenger Staff
Thursday, November 19President Saakashvili recently spoke about returning VAT, in particular that charged on exports, more promptly. Under the tax code the return of VAT on exported products should be concluded in a minimum of 2 weeks and maximum of 3 months, however as a rule this VAT is either not returned at all or only after months or sometimes of years.
Economic analyst Professor Nodar Khaduri confirms the importance of VAT return for entrepreneurs as it gives them the possibility of reinvesting this money to develop their businesses further. Fellow analyst Davit Narmania thinks that the GEL 35 million which President Saakashvili declared was the amount to be returned is 10 times less than the actual amount. Returning this money does not count as providing support for business because this money is legally owned by the businesses, thinks Narmania.
President Saakashivli stated that until recently VAT return generally took 7-8 months but from now on it will happen immediately. He said that in 2009 VAT return might be worth more than GEL 180 million. Finance Minister Kakha Baindurashvili stated that a special VAT refund reserve has been accumulated, to which 2% of tax revenues also flow, but as currently there is no money in this VAT fund the State has decided to allot GEL 35 million from budget to cover VAT returns.