The draft law “Value Added Tax Code” was submitted by the Ministry of National Economy and Finance. The draft law is a codification of the provisions governing the Value Added Tax (VAT) in terms of its overall content (scope of application, taxable transactions and their place of implementation, origination of tax liability, taxable value – basis for imposing the tax and its calculation, exemptions, tax deduction and refund, debtors and their legal obligations, special regimes, etc.).

As stated in the introductory report, the draft Code aims to update and improve the quality of the regulatory framework for VAT, in such a way that the implementation of the relevant provisions is carried out in a safe legislative environment, for the convenience of both the implementers and interpreters of the law (Administration and Courts) as well as taxpayers.

According to the report of the General Accounting Office of the State, the Code in question is a codification and update of the existing provisions governing VAT, without substantial changes to them.

The proposed provisions do not cause additional financial impacts on the state budget and the budgets of the General Government bodies.