ECONOMY

Overdue VAT rebates top half a billion euros

overdue-vat-rebates-top-half-a-billion-euros

While the government has stated its intention to hand out around a billion euros next week – ahead of the May 26 European, local and regional elections – the state owes well over half that in outstanding value-added tax rebates to taxpayers, according to data from the Independent Authority for Public Revenue.

The state’s total debts in VAT rebates amounted to 580 million euros at the end of April, down from 891 million euros in January 2017. Over 37 percent of that amount, 214.88 million euros, concerns a single case.

Out of that 580 million euros, 84.8 million is for rebates pending for more than 90 days, down from 735 million euros in January 2017. In their majority, these debts are outstanding as a result of disputes or inspections that have prevented them from being processed.

The tax administration aims to accelerate the payment of the state’s dues to taxpayers. The reduction of the state’s overdue rebates in the last few years is the result of an amendment passed in late 2018 providing for the immediate reimbursement of VAT for demands by individuals and businesses that do not exceed 10,000 euros each, provided there are no disputes concerning the amount due.