PM announces plans for firms and state to offset VAT debts

Prime Minister Antonis Samaras announced on Monday the launch of a scheme that will allow companies to offset the VAT they owe the state against the returns the state owes them.

The option will also be open to firms to use in the debts they owe to each other, meaning they would subtract the VAT from the total owed.

Samaras said that fines imposed on businesses that are unable to pay their taxes because the state has not returned their VAT would be scrapped.

“The state cannot be strict on citizens if it is not fair to citizens,” he said.