Buying books: Government right bad public money management

After the tender for the purchase of books has failed, the Ministry of Education has decided that parents will buy them themselves and then the government will repay the purchase. The tender has failed to argue that publishing houses have offered about 500,000 euros more expensive than the ministry's projected value, and that has been the reason for the annulment.

But how are you letting the country go, buying books in tenders, or remunturing?

The Kosovo government has today kept electronically, the next meeting in which it has allocated about 13m euros for subsidisation of textbooks for students of 1-5 classes and for classes 6-9.

“6, 323,380 (six million three hundred twenty-three thousand and three hundred and eighty) euros for subvention of textbooks for 1-5 classrooms, and 6,617,340 (six million and six hundred and seven hundred and four hundred and forty) euros for subsidisation of textbooks for 1-9-8x1>, the executive report says.

So, as seen, 6.3m euros have to do with the purchase intended to be purchased with a tender. Initially, the tender procedure has been of negotiation, worth projected 4,316,885.00 euros, and is estimated for each publishing house, divided into 7 tears.

The publishing houses have offered higher bids than anticipated value. If we collect the bids, they give a lot of 5,882,743.40 euros.

After the negotiations were held, the total negotiated amount was 4,830,62 euros, about 500,000 euros more than the anticipated value, or about 13 percent of the total price set by the ministry.

This suggests that publishing houses have been reasonable during the negotiations, as they have dropped the offer for more than 1m euros, but AugustI has not wanted to spend 500 thousand euros more than he anticipated.

The reason for the annulment has been that since the bidders have exceeded the projected value of this procurement procedure. Even though negotiations have been conducted with the Publishing Houses, prices are higher than the amount envisioned for this procurement procedure”, the ministry has said.

At tenders with negotiation, the understanding of negotiations is to find a compromise between bidders and buyers.

The ministry has had time to continue with the re-enter, where it would cost 4.8m euros.

Now we're getting back on, separately for this job, the government has earmarked 6.3m euros, which means it's public money malmanagement.

On the other hand, if the Ministry of Education signed contracts with the publishing company for the purchase of textbooks, the VAT would return, and now there is danger of tax evasion.

How to Turn To The government's VV and why is there danger of tax evasion?

Typically, when the Ministry of Education purchases goods or services, including textbooks, the State Value Tax (TVSH) is initially paid to the publishing company. Later, the government could recover this sum of VAT by submitting a request for VAT reimbursement to the tax authority. The VAT reimbursement process includes providing adequate documentation and meeting specific requirements. The government will have to demonstrate that goods or purchased services are for official use and are acceptable for VAT recovery. Once adopted, the tax authority will return the VAT sum back to the government.

But, as it is known, the Ministry of Education this year refused to sign similar contracts for textbooks. Instead, the Ministry of Education decided to subsidize all parents so that they could buy books. Is there risk of tax evasion by the publishing company and its vendors?

There may be risks to tax evasion if the publishing company and its retail retailers do not accurately report their sales and income regarding the school books subsidised. Fiscal evasion occurs when economic units deliberately underreport their profits or manipulate their transactions to avoid taxes. To ease this danger, there must be proper monitoring mechanisms, monitoring and reporting to ensure that subsidies are being used properly and that all appropriate taxes, including T The VSH, are calculated and paid correctly. It is important that tax authorities have transparency in transactions and conduct checks if necessary to ensure compatibility.

The Ministry of Education announced that there is no need to present book bills with subsidies, in this case the publishing company and its vendors can easily avoid taxes?

Yes, if the Ministry of Education does not require sufficient bills or documentation for subsidised books, it could create an opportunity for its publishing company and retailers to be potentially involved in tax evasion. Without proper documentation, it becomes difficult for tax authorities to verify the accuracy of transactions and ensure that proper taxes are being paid. To prevent this, implementation of a system of checks and balances, requiring accurate reporting and conducting periodic controls, could help preserve transparency and prevent possible fiscal evasion.

Periscope has requested an answer from ATK regarding the issue, but they have not returned. /Periscopi/