Obligation to have bank account registered in name abolished for value-added tax
The Tax and Customs Administration with effect from the first of December 2013 has adhered to the policy of not transferring refunds and allowances to any bank account that is not registered in the relevant beneficiary’s name. This has caused unforeseen problems where it concerns the payment of value-added tax due to the tax services freezing all payments to be made direct to fiscal representatives or affiliated companies rather than to the ultimate beneficiaries. The State Secretary for Finance has now decided that the obligation to have the bank account registered in the beneficiary’s own name should no longer apply within the value-added tax sphere, in anticipation of the abolition of the obligation effective the first of January 2015 which has been announced.
A written petition stating the bank account number and the name in which the account is registered is to be filed with the Tax and Customs Administration by those who wish to gain permission, in addition to which the petitioner is required to waive the option of invoking non-discharging payment, making it impossible for the entrepreneur to claim that the tax services have made the payment to the wrong party and therefore still owe the entrepreneur a tax refund. The Tax and Customs Administration has the right when processing the petition to ask for additional proof to make sure that the beneficiary does indeed have the disposal of the bank account in question.