The law also introduces substantial changes to VAT. Currently, 50% of the VAT credit obtained in the purchase of raw materials is reimbursable for the exporters of unprocessed agricultural products or products with basic industrial processing (e.g. raw flour or oil, not fit for human consumption). The bill provides that the VAT fiscal credit obtained from the purchase of agricultural raw materials may no longer be reimbursed, in cases where goods are exported without industrial processing. Consequently, the VAT credit will represent a new cost for the exporters of agricultural raw materials. Since this will now be an expense, payment of such VAT may still be used as a deductible cost for the assessment of the IRE.
Source: bloombergtax.com
