Taxation|The administrative burden can become too heavy for many companies, the organization’s chief economist warns.
Value added tax the increase already at the beginning of September causes problems for many companies, according to a survey conducted by Suomen Yrittäjie. Almost half of the respondents to the entrepreneur gallup estimate that the schedule causes at least some challenges. Three percent of all respondents considered the schedule impossible, and four percent estimated that it caused a lot of challenges.
46 percent of the respondents, on the other hand, thought that the increase schedule would not cause any special problems.
Chief Economist of Suomen Yrittäjai Juhana Brotherus considers a fast schedule bad and hasty for companies. The turn of the year would have been a clearly better time for companies.
The general value added tax rate will be increased from 24% to 25.5% at the beginning of September.
“Many feel that the schedule of the increase is unreasonable. A waiting period of less than three months before the tax increase comes into force is exceptional in the middle of the summer season. The tax increase to half a decimal and in the middle of the VAT season forces many SMEs to update their information systems and reorganize their invoicing, causing extensive challenges,” says Brotherus in the press release.
Entrepreneurs do understand the need to strengthen public finances, Brotherus states.
“It’s hard to understand that it’s done in a way that makes entrepreneurship difficult on a large scale and causes unnecessary administrative costs for SMEs,” Brotherus scolds.
SMEs already have enough problems. The fear is that some SMEs will not be able to cope with the costs and administrative burden caused by the increase.
“In the worst case, we even see the cessation of business, when every twenty SMEs fear that they will not be able to cope with the costs and administrative burden of the increase”, warns Brotherus.
The Yrittäjägalup implemented by Verian was answered by 3.–12 June 1,080 representatives of micro and SME companies. 45 percent of the respondents were self-employed. The confidence interval of the research results is 3.1 percentage points in each direction.
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