Latest news

Latest news:

VAT administration for farmers could be revised after Q1 2016

January 27, 2016

Finance Minister of Ukraine Natalie Jaresko anticipates difficulties with administration of value added tax (VAT) for agricultural companies and these legislative requirements could be revised at the end of Q1 2016.

“We will see the results of the first quarter how the special regime for farmers functions, as it would be very difficult to administrate it,” the minister told reporters.

Jaresko said that the revision of the special regime for farmers is not a requirement of the International Monetary Fund (IMF).

Commenting on the debt for overpayment of profit tax that totals some UAH 24.5 billion, according to the State Fiscal Service, the minister said that the issue will remain unsettled.

“Unfortunately, we did not find [funds to settle the issue] in the budget. We will look for the possibility of returning or refunding or balancing the sum as soon as possible. Now we don’t have the resource,” she said, adding that the task to avoid accumulation of the debt is set.

Ukrainian authorities as part of cooperation with the IMF obliged to transfer agricultural companies to the general VAT taxation regime from 2016. However, after protests of farmers the parliament in late 2015 approved a compromise on the beneficial transition period in 2016.

According to the amendments made by the parliament to the Tax Code, in 2016, the VAT payment system will be used by farmers. Farmers working with grain and industrial crops will send 85% of VAT to the budget, and 15% will be sent to special accounts; for transactions with animal products – 20% will be paid to the budget and 80% to the special accounts, and for transaction with other agricultural products – 50% to the budget and 50% to the special accounts.

The opening of three additional accounts in the VAT electronic administration system was initiated to implement the requirement for farmers. Software for VAT electronic administration for farmers was updated.

Source: http://en.interfax.com.ua/