After the adoption of the Law on Cooperatives in 2015, the state invested significant funds in the revitalization of existing cooperatives and the establishment of new cooperatives. Although some progress has been made, many legal provisions still remain incomplete, especially when it comes to financing cooperatives. In particular, the problem of paying VAT on the services of using cooperative machinery is highlighted, which, according to the cooperative unions, is unfair and pointless. Although cooperative members have repeatedly appealed to the Ministry of Finance to analyze and amend this provision, so far there has been no serious progress in that direction.
Cooperatives are based on the pooling of work and resources, which contributes to reducing costs and increasing income. This business model is recognized and supported all over the world, but the situation is different in Serbia. Namely, cooperative members still pay VAT on the machinery they use, even though VAT has already been paid when purchasing the machinery itself. In the European Union, there are numerous laws that support the development of cooperatives, through incentives and incentives, while in our country there are almost no such incentives. This puts additional financial pressure on cooperatives that are already struggling with low farm prices and rising costs.
But how will the cooperative live?
A study by the European Commission shows that more than 300 support measures for cooperatives, which aim to strengthen their role in social and economic development, have been registered in the EU. In contrast, in Serbia, cooperative members believe that production incentives are insufficient, despite the recent improvement in the situation in Vojvodina. The main problems of cooperatives include high costs, especially VAT on the use of machinery, as well as credit indebtedness.
In the current conditions, cooperative members are faced with economic difficulties, especially due to low product prices. Although the state cannot directly influence the market, it is necessary to adopt measures that would exempt cooperatives from paying VAT on the use of machinery, as well as on services such as storage, preservation and processing of products. These measures would eliminate the gray economy and enable greater competitiveness and sustainability of cooperatives.
Despite the difficulties, cooperatives in Serbia are on the road to recovery, thanks to the help of the state. For further development, it is necessary to reduce tax burdens, which would help not only large, but also small and medium-sized producers, who are key to the survival of cooperatives on the market of agricultural products.
Source: Farmer
Source: boljazemlja.com
