KYIV. Oct 28 (Interfax-Ukraine) – Members of the Verkhovna Rada have proposed the reduction of value added tax (VAT) from 20% to 15% and the introduction of the automatic tax refund for all amounts confirmed by the electronic VAT administration system.
The provision is contained in the draft tax reform registered in the parliament by 114 deputies on October 26.
The bill provides for the abolition of restrictions on automatic VAT refunds, the introduction of public registration of applications for budgetary compensation, and the disclosure of information about the status of VAT refunds for certain taxpayers and the amount of VAT refunds they claimed. The MPs also proposed the introduction of compulsory VAT refunds according to the order of any given application.
The MPs also offered to solve the problem of the erosion of taxpayers’ working capital due to the increase of the “overdraft” incurred by monthly tax liabilities payable to the average monthly accrued tax liabilities of the taxpayer, as well as to introduce the possibility of recording tax bills late without any replenishment of VAT accounts via the changing the parameters of the formula.
The draft document also states that supervisory authorities should be banned from canceling the amount of tax credit on formal specifics: tax credit can be canceled if an error affects the individual tax number of taxpayers or if it is formed by non-taxable transactions.
