- NCE is concerned about the proposed removal of the Simplified VAT system.
- NCE commends the government’s efforts towards digital transformation but expresses concerns about the potential consequences for the export sector.
- Exporters are facing challenges including fluctuating global demand, fierce international competition, and domestic operational constraints.
- The SVAT system provides exporters with a critical advantage by minimizing cash flow disruptions.
- The proposed move to a refund-based system relies on the assumption that digitalization will guarantee timely and efficient VAT refunds.
- NCE stresses the importance of rigorous testing to ensure the new system operates flawlessly.
- Historical experiences with VAT refunds highlight significant concerns, including prolonged delays and cumbersome administrative procedures.
- NCE urges the government to adopt a phased, carefully monitored approach to the transition.
- NCE recommends pilot testing, a clear implementation timeline, stakeholder support and training, prompt refund assurances, and safeguards against system failures.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
