Price rises could negate Internet service VAT exemptions

The law only exempted private individuals from the tax and left business customers with the unchanged 22% rate, which further implies that IT companies will only be eligible to deduct tax for new equipment in proportion to the number of business clients they have. Services that are exempt from tax do not qualify for tax deductions, which means companies will have to raise this money by increasing their prices. The proportion of individuals to business customers at the beginning of each tax year will be derived from the previous year's statistics and be revised at the end of the tax year for the following five years. (Parkiet p.7) M.G.