Photo from UNIAN
Ukrainian President Petro Poroshenko says he believes that the introduction of the electronic register of automatic VAT refunds in Ukraine is another step taken by Ukraine towards the European Union, according to the presidential press service.
"I am really glad that the entire team has demonstrated an absolutely solid political will and we have found enough arguments to introduce this new, revolutionary system that allows ensuring an efficient, transparent public control over the entire mechanism of refund," the president said at a meeting on the launch of an electronic register of automatic VAT refund in Ukraine on April 3.
Poroshenko called the launch very important as there have been only speculations in this sphere for a long time instead of the transparent work.
Read alsoPoroshenko thanks IMF for new disbursement"Ukraine has been going to this day since 1996. Ukrainian entrepreneurs have been waiting for transparency in the VAT refund for 21 years. Unfortunately, the VAT refund system has been nourishing corrupt officials for 21 years. The funds have been drawn from the 'air' and from the state budget for 21 years. And this had a huge negative impact for the economy," he stated.
That is why, he stressed, the introduction of electronic administration of the VAT refund is another important stage, which has a great anti-corruption component, along with the introduction of the transparent gas procurement mechanisms, state electronic procurement via the ProZorro system, delegation of financial resource to the local authorities within the process of decentralization.
"Remember this day, April 3, when we launch the system of transparent public control over the VAT refund," he added.
Read alsoVAT refunds in Ukraine grow by 38% in 2016, to almost $3.5 blnAmong the advantages of the system, according to Poroshenko, is the abolition of the manual mode of VAT refund and full automation of the process: everyone can control the date of the application, the tax will be refunded only in chronological order, and the system of verifications will be public, with justifications and fixed term. "The verdict delivery will be strictly controlled under the fixed term and nobody will be able to postpone without explanations, abolish or exclude from the register this or that taxpayer," the head of state said.
Poroshenko stressed that the situation with VAT refund has been improved drastically recently, however this process has been still manually managed. "An investor comes, addresses the president and the prime minister and we are working over the specific case ensuring the refund. The main thing is that you don't need to address anymore. The refund must be automatic," Poroshenko noted, adding that the new system is based on the European model of VAT administration, in contrast to a vicious practice of administering the tax in non-transparent conditions that existed in Ukraine previously.
"Ukraine's rapprochement with the EU is held, inter alia, through the introduction of an efficient anti-corruption VAT refund system," he stressed.
Poroshenko thanked the parliament, government and everyone involved in developing and launching the register. He believes it will promote the improvement of conditions for businessmen.
Read alsoAccounting Chamber: Tax debt in Ukraine grows almost fourfold over past 3 years"This is a vivid evidence of anti-corruption steps, efficient steps aimed to improve the investment climate," the head of state emphasized.
Ukraine's Finance Minister Oleksandr Danyliuk demonstrated the meeting the functioning register, which is posted on the website of the Finance Ministry. In particular, he said that the register reflects information on the date of filing a VAT refund application, the enterprise, the amount claimed for reimbursement, as well as information on transfer of funds to the entrepreneurs' accounts by the treasury. According to him, Ukraine's State Fiscal Service is compiling all the incoming information in the register based on business applications, and fixes these data with an electronic digital signature.
Read alsoPoroshenko enacts law on simplification of inheritance taxThe minister noted that the register would be operating in a test mode until July 1. In the process of continuous monitoring, there will be revealed and eliminate all the possible shortcomings.
As UNIAN reported, Minister Danyliuk on April 2 informed about an attempt to disrupt the launch of the e-register of automatic VAT refund.
The issue of VAT refund has been and remains one of the main business claims to the state for many years. Some UAH 94.3 billion, or US$3.477 billion, had been reimbursed to entrepreneurs in 2016.
In January 2017, entrepreneurs announced UAH 22.4 billion, or $826 million, as the largest amount of VAT refund for the entire history of reimbursements.