Leading agrarian associations have applied to Volodymyr Hroisman, the Prime Minister of Ukraine, with a request to interfere without further delay into a critical situation which occurred with illegal closing of accounts in the system of electronic administration of VAT.

The corresponding application letter has been signed by heads of the following associations: ‘Ukrainian Agribusiness Club’, ‘All-Ukrainian Agrarian Council’, National Association of Sugar Producers of Ukraine ‘UkrTsukor’, Public Association ‘Agrarian Union of Ukraine’, Ukrainian Public Organization ‘Ukrainian Agrarian Confederation’, ‘Union of Poultry Breeders of Ukraine’.

‘Blocking of accounts in the system of electronic administration of VAT has caused agricultural producers’ inability to pay value added tax in compliance with the tax legislation,’ informed the application letter.    

The situation occurs when in order to register VAT invoice for 2016 an agricultural producer will be forced to deposit an account in the system of electronic administration of VAT on the basis of general system which is different from the previous one, though, according to the legislation, he still has every right to use an auxiliary account which has been prematurely blocked as well as receive a part of the funds on his special account pursuant to the conditions of VAT special regime for 2016.

Consequently, the part of funds entered on the general account of the system of electronic administration of VAT for registration of tax invoice for 2016 not to be paid to the budget will be blocked. There will not be any grounds to transfer this part of funds on the payer’s special account leading to their actual elimination from the agricultural producer’s sales turnover.  

The agrarian associations demand to unblock promptly auxiliary electronic accounts in the system of electronic administration of VAT for agricultural goods producers; to withdraw promptly letters of the State Fiscal Service of Ukraine dated 28.12.2016 No 22601/5/99-99-15-03-01-16 and dated 30.12.2016 No 22780/5/99-99-12-02-01-16; to guarantee undeviating fulfillment of requirements of the Law dated  20.12.2016 No 1791-VIII ‘On amendments to the Tax Code of Ukraine and some legislative instruments of Ukraine regarding maintenance of equation of budget receipts in 2017’ by public officials of State Fiscal Service and Treasury of Ukraine which are related to the possibility of conducting budget settlements according to VAT declaration marked 0121-0123 through auxiliary electronic accounts in the system of electronic administration of VAT for agricultural goods producers using quarter tax period, - starting from 20 February, 2017.