Additional VAT charges for LPG due to. Misunderstanding

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The Tax Officer admitted on Tuesday before the Parliamentary Committee on Energy, Trade, Industry and Tourism that there was a misunderstanding and misinterpretation regarding the recent decision of the Council of Ministers to increase the VAT for LPG to 19%, and that it concerns only the LPG and not LPG sold in bulk, noting that a relevant clarification circular will be issued immediately.

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The Deputy Chairman of the Committee, DISY MP Andreas Michailidis, stated that consumers who have been charged extra, due to this misunderstanding, and paid 19% VAT instead of 5%, should contact the companies that sold them the LPG to return it. the additional charges, which in turn the companies themselves will claim from VAT.

In his statements, AKEL MP Costas Costa said that his party wonders why, while the reactions of parties, unions and consumers were intense and immediate, it had to take 18 days from the decision, for the competent Ministry to recognize the wrong, with the result that companies sell LPG in bulk with 19% VAT and this increase is loaded on consumers.

He wondered if the government would return the additional amount collected, as stated today by the Tax Officer, to add that "we consider that this is not a mistake or misunderstanding, but either a deliberate decision according to the circular of the Tax Officer dated 8/10/2015 or at least for incapacity, and that the decision, due to the strong reaction, was forced by the Ministry to change it ”.

For his part, Mr. Michailidis stated that in the 4,5 years that he is an MP, it is the first time that the executive power presented itself and said that there was a misinterpretation and a mistake was made "and I credit that to them".

"It simply came to our notice then. "Today he clarified that it concerns only the car", he stated and noted that those who have paid with 19% will submit a credit note and the extra amount will be returned to them. "Therefore, we consider it a confusion that is clearing up today and there was no expediency, no deliberate action on the part of the executive branch, and we are glad that the Trade Committee is clearing up this thing definitively and irrevocably."

Answering a question about the credit note, Mr. Michailidis explained that in their VAT return the companies will declare the number of sales made to consumers with 19% VAT and will be refunded the difference of 5% that should have been charged. He added that the affected consumers should contact the companies to return the extra charges and the companies will claim them from the VAT.

Source: KYPE