The Ministry of Agriculture is set to finalize the exact budget needed by year-end for VAT exemption subsidies under the IPARD II program, benefiting agricultural producers who invested last year.
According to a Ministry report for the Government, the Payments Directorate will compile a list of those not exempted from VAT payments in 2023, having invested before VAT exemption regulations were amended.
Previously, IPARD beneficiaries as individuals had to pay VAT and other taxes without exemption, resulting in uneven support based on legal status.
The Ministry refunded EUR 1,381,273 to beneficiaries for VAT paid on investments from 2019 to 2022.
IPARD programs provide non-repayable funds to modernize agriculture, overseen by the Ministry. Funds must be spent timely or returned to the EU. IPARD 2 aims to make sectors competitive for EU accession, with EUR 51.86 million available to farmers by year-end (EUR 39 million EU, EUR 12.81 million national treasury).
“Per regulations, VAT refunds for 2023 investments will be processed via subsidies. The Ministry will list 2023 beneficiaries who couldn’t use VAT exemptions due to pre-amendment payments. Six in-progress beneficiaries haven’t applied. Potential refunds for contracted investments total EUR 13,663. Uncertain beneficiary numbers hinder exact 2024 budget figures. Ministries ensured finance and legal backing for potential IPARD lawsuits,” as per Minister Vladimir Joković’s report.
IPARD 2 required beneficiaries to invest personally for non-repayable support, challenging due to funding and loan collateral limits. Beneficiaries built livestock housing, mechanization, feed, plantations, irrigation, and vehicles.
