At the extraordinary session which began at 4.50 p.m., the Riigikogu passed with 61 votes in favour the Act on Implementation of the Act on Amendments to Acts relating to the Second Supplementary State Budget of the Year 2009 Act (556 SE), initiated by the Estonian Reform Party Faction, the Pro Patria and Res Publica Union Faction and the Estonian Green Party Faction, which alleviates the impact experienced by undertakings as a result of rising of the value added tax rate at a too short notice. The Act extends by one month the transition period which is granted for updating of price tags in sales areas and submission of value added tax returns. Until 30 September, the price charged for goods may be higher than that indicated on the price tag, by an extent which is equal to the rise of the value added tax. Also, July’s value added tax returns are permitted to be submitted with a delay until 30 September 2009. The penalty payment prescribed by law will not be imposed on undertakings who submit the tax return by this date and their activities will not be interpreted as obstruction of the activities of a tax authority. The Act provides the possibility to compensate to undertakings the additional costs arising from the rapid change of the value added tax rate if the undertaking proves that such costs could never have arisen if the value added tax rate had been changed at longer notice. The Minister of Finance will approve a more detailed procedure for compensation. To a large part, the Act is implemented retroactively as of 1 July 2009, except the sections concerning long-term contracts and compensation for damage.
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