Finance Ministry is developing a bill to abolish the automatic VAT refund
Ukrainian Ministry of Finance intends to cancel the automatic refund from the state budget of the value added tax and introduce a public registry of applications for a VAT refund. Such a proposal contained in the draft law "On introducing changes to the current Tax code," which is published for further discussion on the Ministry's website.
Experts note that the difference between the automatic compensation cannot be considered a positive change. However, such a position demonstrates that the government recognizes its inability to refund VAT in the automatic mode. In addition, the operation of the system of automatic compensation simplifies the job of taxpayers, but only causes beslic complaints.
Now there are two register of applications for refund of VAT. So far, however, the law does not determine the priority of satisfaction of the approved applications for compensation, which are included in automatic and non-automatic registers. Thus, the introduction of a single registry will make more transparent the activities of companies involved in VAT refunds.
The draft law provides for liberalization of terms of registration in the unified register of tax invoice and adjustment calculation to it on the basis of which the taxpayer forms the tax credit. Further clarification of the rules for the taxation of the reorganization income taxes and VAT and it is proposed to introduce tax holidays on profit tax until the end 2021року for those taxpayers whose income does not exceed UAH 3 million a year.