The American Chamber of Commerce in Croatia (AmCham) has pushed for the introduction of a binding tax ruling and solving the problem of late VAT refunds so as to ease the tax burden for entrepreneurs doing business in Croatia.
The application of our proposals would facilitate business activities on the Croatian market and cut entrepreneurs' costs without a negative impact on tax revenues and the state budget, AmCham director Andrea Doko Jelusic told reporters on Tuesday.
AmCham said late VAT refunds are a large obstacle in the Croatian market. AmCham said that although the Tax Administration should refund the difference within 30 days after the tax return was submitted, VAT refunds were routinely paid with significant delay (over a year in many cases) and taxpayers were put through significant stress in the form of inspections if they requested a refund.
The businesses hardest hit by this are small companies, businesses with high capital investments and exporters. The chamber also warns that such practice leads many would-be-investors to look elsewhere to spend their investment funds.
AmCham presented its proposals to the Tax Administration, which finds them interesting, and the Office of Deputy Prime Minister for Investments Domagoj Milosevic. AmCham also plans to present its proposals to the new government.
