The Association “Ukrainian Agribusiness Club” sent an official appeal to Nina Yuzhanina, Chairman of the Verkhovna Rada of Ukraine Committee on Tax and Customs Policy, requesting the rejection of the Bill No. 7115.
The people's deputies of Ukraine propose to make a number of changes to the transitional provisions of Tax Code of Ukraine concerning the procedure for the suspension of the registration of tax invoices and adjustments calculations. These changes are enshrined in the bill No. 7115, registered in the Verkhovna Rada on September 15, 2017. Companies-members of the Association “Ukrainian Agribusiness Club” are asking the deputies not to support the bill No. 7115.
The explanatory memorandum of the bill calls for the application of the test regime for stopping the registration of tax invoices before the adoption of the draft law developed by the Government. Thus, the bill No. 7115 will not help to improve the VAT administration procedure, but only once again will change the current tax legislation.
Suspension of the rules on unconditional tax credit will mean, in fact, the return of co-responsibility of taxpayers for any breach of the supply chain, which may lead to an increase in cases of VAT non-reimbursement to good faith taxpayers.
UCAB experts are worried that granting for SFS the powers to stop tax invoices, regardless of the statutory risk criteria, actually returns a mechanism that has signs of corruption risks. Changes in the procedure for registration of tax invoices will lead to the need for documentary checks of the claimed amounts, which will entail risks of abuse by the controlling authorities and virtually cancel the automatic reimbursement.
The Association believes that instead of returning to the system in the test mode, as proposed by the bill No. 7115, it is worthwhile to update the mechanism of compliance monitoring system work in real time. In particular, UCAB approves the order of the Ministry of Finance of September 18, 2017, No. 776 “On approval of changes to the criteria for assessing the level of risks that sufficient to stop the registration of the tax invoice / calculation of adjustments in the Uniform Register of Tax Invoices”, which obliges the State Tax Service to automatically register the tax invoices of agricultural enterprises. This order is already registered with the Ministry of Justice. The document solves the problem of blocking the tax invoices for agricultural producers. For automatic registration of the tax invoices for agricultural enterprises it is necessary to provide in advance a technical card and analytical certificate that the enterprise is engaged in growing of agricultural products.