Over 200 thousand businesses registered in the MTI, only 35 thousand of them fiscalised

Over 200 thousand businesses registered in the MTI, only 35 thousand of them fiscalised

Of the more than 200,000 businesses registered in the Ministry of Trade and Industry, according to the Kosovo Tax Administration (ATK), only about 35 thousand of them are fiscalised. Based on this data, many businesses continue to flee their tax obligations to the state. Equipment with fiscal crates or the legalisation of business subjects, [...]

Of the more than 200,000 businesses registered in the Ministry of Trade and Industry, according to the Kosovo Tax Administration (ATK), only about 35 thousand of them are fiscalised. Based on this data, many businesses continue to flee their tax obligations to the state.

Equipment with fiscal crates or the legalisation of business subjects had begun as a process in 2010, and the goal was to avoid fiscal evasion, as the potential of this system is to register all access and exits (s).

In a written response by ATK, it is said that the exact number of uninficated businesses cannot be known. It adds that many factors affect the fiscalization process.

A number of businesses are not obliged to fiscalize because of the nature of the work they do. Businesses that are not obliged to equip with fiscal crates are those that all payments are carried out through bank transactions, banking sector, microfinancial businesses, as well as some of the public companies”, said in the ATK response.

In addition to those businesses that are not obliged to be equipped with fiscal crates, there are businesses that register, but they never engage or close immediately after the census.

Kosovo Tax Administration in Previous Statements The REL has suggested that tax evasion is available on all sides of Kosovo, but it is thought that this activity is mostly extended to four municipalities in northern Kosovo, inhabited by Serb majority.

In ATK, the informal economy in Kosovo by international mechanisms is estimated to be up to 30 per cent of the local Bruto Product, but according to this institution, that figure does not include alone ATK.

This figure implies a large number of tax evasion institutions, not only ATK, since reports are built with economic crimes based, smuggling, money laundering and much more, while ATK is responsible only for the share of the grey economy”, the ATK response is said.

However, the number of these businesses that evade tax duties by creating tax evasion creates unfair competition on the market, which according to company owner “Frutex”, Shacir Palushi poses a problem for formal businesses.

He in a proposal to say that for years, like business that pays all tax obligations, they have faced unfair competition in the market.

The scope of tax evasion for years in Kosovo has certainly damaged business, but has primarily damaged the state budget and subsequently citizens and the country's development. Fleeing from tax, those businesses give them opportunities to offer products at lower prices, and this for formal business is unfair competition”, he says.

Fighting tax evasion is seen as opportunities for the country's economic development. In a proposal for Radio Free Europe, Arian Zeka, executive director of the American Economic Ode, says that to realise promises of employment and economic development made by the Vetvendosje Movement party, which has won the February 14th elections, informal economy must be fought.

With a more serious approach on the part of state institutions, in the first order of ATK, which makes the domestic collection of taxes, we can have significant results in fighting the informal economy”, Zeka said.

In order to combat tax evasion, in 2015 an administrative guide had entered into force, which provided for all consumers who collect fiscal vouchers and as such send them to ATK, would apply to the compensation of the taxable value of all fiscal coupons in the following month of each quarter.

Then this process had undergone modifications to repurchasing. Meanwhile, in 2020, he was suspended with an ATK decision.

According to the ATK, for reactivating the campaign “remigration of citizens from the collection of fiscal coupons”, citizens will be informed over time.

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