The Regional Government of Madeira has announced it will advance a €4.7 million refund of Value Added Tax (VAT) to the island's Private Social Solidarity Institutions (IPSS). This amount represents 50% of the tax paid on works financed by the Recovery and Resilience Plan (PRR).
This measure is a solution found by the Madeiran executive to address a problem that has persisted for months, concerning delays in refunds from the central government. Regional President Miguel Albuquerque described the administrative hurdles as "Byzantine complexity," which prevented Madeiran institutions from receiving the reimbursement, unlike their mainland counterparts.
Albuquerque expressed frustration over the lack of resolution at the national level, despite several meetings in Lisbon. The decision to advance the funds aims to mitigate the financial impact on local IPSS while awaiting a settlement with the central government. The president also assured that the timeline for other PRR social projects will be met, with several works already completed or nearing completion.
