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Enhancing PRO Services and Timely VAT Refunds: Azeski Meets Don Mainwaring, Advisor from the U.S. Treasury Office of Technical Assistance

15/11/2024

 In an open discussion during the working meeting between Branko Azeski, President of the Economic Chamber of North Macedonia, and Don Mainwaring, held at the Chamber, business representatives outlined their perspectives on the desired changes to help the PRO better and more quickly serve taxpayers.

Mr. Don Mainwaring from the U.S. Department of the Treasury's Office of Technical Assistance, who leads the team tasked with proposing reforms for RN Macedonia’s Public Revenue Office (PRO), expressed his gratitude for the meeting and the privilege of contributing to strengthening services for taxpayers in the country. He noted that his team is currently developing an operational concept to improve taxpayer services.

President Azeski emphasized the Chamber’s longstanding strong partnership with the Public Revenue Office, characterized by joint projects aimed at benefiting companies and the state.

He highlighted the business sector’s need for predictability and legal certainty as essential factors for ensuring companies’ liquidity and the country’s economic outlook. At the top of the business community’s demands is the timely refund of value-added tax (VAT). Azeski stressed that VAT refunds must not be delayed and that such withholding practices, which benefit the state budget at the expense of businesses, must not recur. Businesses drive economic growth, and legal measures must ensure their liquid assets are not tied up in unnecessarily prolonged tax audits.

In addition to advocating for timely VAT refunds, the Chamber has submitted proposals and initiatives backed by detailed analytical research. These include measures to establish an inclusive process for improving the status of taxpayers, enhancing transparency in economic transactions, combating the grey economy, and ensuring consistent enforcement of regulations. President Azeski highlighted several key priorities:

·        Integrated electronic linkage of all relevant PRO data systems.

·        Retention and recruitment of experts in the PRO, particularly for tax inspections, along with improved motivation, continuous education, and accountability for delays and unperformed actions.

·        Creation of a "whitelist" of compliant taxpayers to encourage legal operations and increase tax discipline.

·        Formation of a Taxpayer Advisory Board as a consultative body to improve cooperation between the PRO and taxpayers, enhance the implementation of tax policies, and facilitate communication and coordination with stakeholders.

·        Introduction of a centralized invoicing and inventory tracking system (E-INVOICE) and E-FISCAL RECEIPTS, robust tools to combat the informal economy.

·        Tackling the grey economy in e-commerce to eliminate unfair competition.

The Public Revenue Office aims to achieve its vision and mission by establishing straightforward tax procedures and digital services to assist taxpayers in timely and accurate compliance. The Chamber, as the oldest business association representing the country’s top companies and most skilled professionals, is a natural partner in achieving these goals.