VAT will not arrive in San Marino during this legislature. That was the message reiterated by Finance Secretary of State Marco Gatti, reopening debate on a reform of indirect taxation that has been discussed for years and repeatedly called for by the business community.
“As for VAT, I’ve said it in every possible setting: we will not carry out the VAT reform during this legislature. We are, however, working on studying the impacts, because this is a substantial reform that benefits some sectors but could create difficulties for others,” Gatti explained.
Weighing in on the matter, in an editorial published on social media, is Fixing director Daniele Bartolucci, who focuses specifically on the reform’s timing. In his piece, he recalls the appeals made by Anis (the national association of industry) and points to guidance contained in international analyses of San Marino, from the International Monetary Fund to the World Bank and the European Union.
According to Bartolucci, this latest postponement widens the delay already accumulated on the overhaul of indirect taxes, a reform that was planned alongside the reform of the Igr (San Marino’s general income tax) some 13-14 years ago, keeping the Sammarinese economic system out of step with those of neighbouring countries.
The Fixing director particularly highlights the gap between the government’s current statements and what was set out in the governing programme presented at the start of the legislature. The 2024 document stated: “On the front of indirect taxation, it will be necessary to move towards introducing a value-added tax (VAT) system that takes into account the specific features of San Marino’s economic system.”
Hence the criticism over timing: “If it was necessary in 2024, it is even more so today. Businesses need it, the State needs it. It’s needed now, not — perhaps — in two years,” Bartolucci concludes.
The issue therefore remains open: the government continues to study the effects of introducing VAT, but rules out that the change could be implemented before the end of the legislature.
