Small businesses will have to profit less, raise prices

“Businesses that now operate without paying VAT, will be forced to increase prices of their competitive products and make it equal to businesses that paid VAT”, Dhamo said.

But there are also many businesses which don’t pay VAT, but have same prices with the ones who pay. In this case, citizens pay the VAT but it doesn’t go back to the state budget.

“In that case, small businesses would have to pay it to the state, because citizens have already paid that”, Dhamo says, but those businesses will have to get a smaller profit.

Besides this, small businesses will also have to pay accountants for declaring VAT, and purchase electronic equipment which register an inventory.

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