Fertilizer producers demand interpretation of VAT regulations

Domestic fertilizer producers may soon fall victim to unclear VAT regulations, and to many, the problem may eventually prove fatal. Most producers claim that they are confused as to whether they should pay VAT and if so, at what rate. The situation spurred the Chamber of Chemical Producers to request that the Finance Ministry interpret the regulations. The main source of problems is the amended regulations concerning the taxation of goods and services, which changed the classification of those goods and services that are subject to VAT. In the light of various interpretations by different tax offices, companies pay different VAT rates on the same product, or do not pay it at all. According to the producers, any decision that would make fertilizers subject to VAT, would place them in an extremely difficult situation. (Puls Biznesu, p. 6) J.K.