Project on VAT information exchange presented

This was the second project completed in the development and introduction in Croatia of VIES, the VAT Information Exchange System, whereby the Tax Administration, assisted by the EC and IBM, modernised and adjusted its VAT system.

IBM based the new computerised system on Service-Oriented Architecture which, apart from the electronic exchange of data, provides for the management of cross-border VAT payments, communication with EU countries, less administration and more efficiency for business owners and tax workers.

The system also enables companies to quickly obtain VAT certificates, provides the Tax Administration with a powerful on-line tool to control VAT payments, and advances the fight against tax fraud.

The project was worth EUR 1.9 million, of which 25% came from Croatia and the rest from the EC, Tax Administration head Ivica Mladineo said.

The introduction of VIES is one of the most important projects for Croatia\’s adjustment and accession to the EU, he said, adding the system must go into force before Croatia joined the Union.

A twinning project on VIES management with Austria worth EUR 1.5 million was completed last week. Mladineo said the third and final VIES-related project worth EUR 1.5 million had already been launched and would be completed in 18 months.

A representative of the EC Delegation to Croatia, Paolo Berizzi, said the completion of the three projects, alongside the adjustment of the tax policy on tobacco products, had made Croatia ready to open negotiations with the EU on the Taxation policy chapter.

Berizzi said the development and testing of software for VIES application, done by IBM Croatia, was also important. (Hina) 

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