Fiscal authority clings on to VAT revenues

From April 15 until the end of 2008, importers who bring commodities from outside the EU will again pay VAT at the customs office. The move comes three years after the old system was abolished, according to an emergency ordinance that amends the Fiscal Code, which was adopted on Wednesday by the Government. Companies, which are exempt from VAT on imports for deliveries to other countries in the European Union will also be forced to guarantee the value of the VAT on customs, until proof is provided to the fiscal authority that the goods were indeed delivered to another member state. The Finance Ministry proposed these measures due to concerns over the sudden drop in VAT revenues and due to increased tax evasion. The National Fiscal Administration Authority has recently confirmed the concerns, saying the legislative modification has led to an increase in tax evasion, as this fiscal relaxation measure “has been exploited by some importers for their own personal interest and to the detriment of the state budget”.