The Cabinet of Minister of Ukraine adopted an order concerning improving the system of value added tax administration. This was disclosed by Prime Minister Yulia Tymoshenko at press conference, according to the government’s press-office.

This document, according to the Head of Government, “is conceptual, strategy for carrying out reforms in Ukraine, realizing really a breakthrough for putting the country in order”. At the same time the Prime Minister added that “from today the Tax Administration begins to introduce this procedure into life which enables to stop misuse of VAT payments”.

As Yulia Tymoshenko told, the proposed Program enables to make an analysis of value added tax payment in electronic automatic mode, reveal fictitious enterprises, confirm return of VAT without real check-ups etc. “If this system begins to function, we can say that we put an end to shadowization of VAT payments and delay in returning VAT for exporters,” the Prime Minister stressed.

Moreover, according to the Head of Government, the new Program provides for check-up procedures of enterprises. “We posed a problem that we turn to 10 percent of 100 percent contract check-ups with taxers’ coming. 90 percent will be fulfilled by non-contract means, including analysis of electronic data on enterprises’ activity,” Yulia Tymoshenko noted, adding that during three months the Government must “eliminate any defects concerning VAT payment”.

As the Head of Government noted, it is necessary urgently to put an order in that state, as “misuse of VAT return is at its zenith”. Yulia Tymoshenko said that the previous government had left grave heritage: fictitious export, fictitious chains concerning VAT payment within the country, and as a result – shadow schemes in VAT payments are practically dominating today over normal discharge of taxes.