|
ONLINE VERSION |
|
|
PRINT VERSION |
|
Q & A
Regulations for exemption from public taxes with foreign donors’ finances Donated assets cannot be used for paying public taxes
Can foreign donated assets be used for paying public taxes, is a frequently asked question by many civic associations. We asked Milka Bozhinovska Miova from MCIC to explain the way the Regulations for exemption from duty and other taxes, excise and value added tax (VAT), when importing goods/commodities and providing assets for paying shares and VAT for commodity and services exchange in the country, necessary for realizing projects financed by foreign donors’ finances, are applied.
“Since 20.08.2003 the Regulations for exemption from duty and other taxes, excise and value added tax (VAT), when importing goods/commodities and providing assets for paying shares and VAT for commodity and services exchange in the country, necessary for realizing projects financed by foreign donors’ finances have been applied. There is an agreement between the Government of the Republic of Macedonia and the foreign donor and a clause that donated assets cannot be used for paying public taxes.
An action is brought for exemption from public taxes in the country when realizing projects by the subjects responsible for realizing the project – the implementers (beneficiaries of assets from the budget of the Republic of Macedonia, funds, non-governmental organizations registered in the Republic of Macedonia). The units beneficiaries of assets from the budget of the Republic of Macedonia, who are obliged to realize the project – implementers, bring the procedure through the assets beneficiary from the budget of the Republic of Macedonia.
The local self-government units that are responsible for the project realization – the implementers, bring the procedure through the Ministry of Local Self-government. The procedure can be brought by the foreign donor or subject (foreign legal or physical entity that does not have a business unit in the Republic of Macedonia) – the implementer, that has a written agreement with the foreign donor or his authorized representative for project realization.
1. To issue a certificate for exemption of public taxes in the Republic of Macedonia when importing goods/commodities for realizing projects financed by foreign donors’ finances, a request of Form A1-P (Official gazette of the Republic of Macedonia 54/03) is submitted to the Ministry of Finance, in two copies with enclosed documents: an invoice or a purchase and sale contract; a document for project’s registration in the Government of the Republic of Macedonia and a contract between the subject for implementing the project – the implementer and the foreign donor, that is his authorized representative.
2. To provide assets for paying excise and VAT from the budget of the Republic of Macedonia for commodity and service exchange in the country, for realizing projects, a request of Form A3-P (Official gazette of the Republic of Macedonia 54/03) is submitted to the Ministry of Finance, in two copies with enclosed documents: an original invoice where the amount of VAT and excise is given in denars; a document for project’s registration in the Government of the Republic of Macedonia and a contract between the subject for implementing the project – the implementer and the foreign donor, that is his authorized representative. The taxpayers who carry out the turnover, make a payment in a treasury account in a special payment account VAT on the basis of donations, of the obligations for VAT by the invoices for turnover in the country when realizing projects financed by foreign donors’ finances, with a clause that they cannot be used for paying public taxes.
Without a payment made of VAT in the special payment account on the basis of donations by the taxpayers, the Treasury Sector will not refund VAT in the taxpayer’s account.
For issuing a certificate for refunding the paid excise and VAT, for purchased goods and used services in the Republic of Macedonia for business needs (electricity, water, telephone, heating, fuel, office materials etc.), for realizing projects financed by foreign donors’ finances, the subject responsible for project realization – the implementer, submits a request of Form A2-P (Official gazette of the Republic of Macedonia 54/03) to the Ministry of Finance, with enclosed documents: an original invoice where the amount of VAT is given in denars; a document for project’s registration in the Government of the Republic of Macedonia and a copy of the contract between the subject for implementing the project – the implementer and the foreign donor, that is his authorized representative.
After getting the certificate by the Ministry of Finance where it is confirmed that the project has a right to refund of the paid VAT and excise for project’s business needs, together with the whole documentation, it is submitted to the Payment Operations Bureau for further procedure.
The subjects responsible for project implementation, report the projects to the Government of the Republic of Macedonia – General Secretariat, European Integration Sector, Department for Foreign Assistance Coordination.
For projects’ realization the subjects are to be given a unique tax number of the project in the Payment Operations Bureau and to open an account in business banks or a treasury account.”
|
|
|
|
|
