On Jan. 25 Ukraine’s Cabinet of Ministers accepted a new procedure for maintaining the Register of VAT refund. Adopted mechanism should help to reduce corruption in VAT refund process and ensure equal conditions for all taxpayers. Also, due to this VAT should be refunded timely and transparently.
Now formation and maintenance of the Register of applications for refund will be based on databases of the State Fiscal (SFS) and Treasury Services. Applications with defined data list will be automatically added to the Register during a day in chronological order of their arrival. All requests for refund will be published on the official website of Ukrainian’s Ministry of Finance.
Earlier, SFS maintained two registers of applications and VAT refund process was selective and non-transparent. Compensation of funds was based on findings, rendered by SFS to the Treasury. Thus, delaying or not sending of findings by employees of SFS, created favorable conditions for corruption in this area.
It should be recalled that the Unified Public Register of VAT refund applications was formed on Jan. 10, 2017. Introduction of the Register was one of the main clauses of the anti-corruption package of tax changes (draft law №5368), which was worked out by the Ministry of Finance in cooperation with business community and independent public experts.
Source: Ministry of Finance