The opinion of UGA concerning the refund of VAT
According to the UGA, the VAT refund on the export of such oilseeds as soybean and rapeseed should either be fully restored for all exporters or fully eliminated for each member of the grain market.
Such information was provided by the Ukrainian Grain Association.
Act No. 7403-d can be considered quite discriminatory, since it provides VAT refund only to farmers who are engaged in the cultivation and export of soy. Also, this law contradicts the Constitution of Ukraine, as the state is to ensure the protection of competition in the field of entrepreneurship.
According to experts, such policy will lead to lower prices for these crops in the domestic market, and in addition, Ukraine may lose part of the EU market.
Also, similar measures with regard to partial VAT refund was already applied 4 years ago, but this led to nothing, except for the deterioration of the business of Ukrainian farmers.
In addition, UGA argue that with full VAT cancellation, honest companies will have advantages over shadow ones, since after that the ways of VAT refunds bypassing the law will be terminated.
Value-added tax (VAT) is one of the most widely spread taxes in Ukraine. Companies registered as VAT payers are entitled to receive reimbursement of VAT paid when purchasing goods and services for their business activities. However, the process of VAT reimbursement is quite complicated and can cause difficulties for entrepreneurs.
The Ukrainian Consumer Protection Association (UCA) has expressed its opinion on VAT reimbursement. It emphasizes the need to simplify the procedure of VAT reimbursement for entrepreneurs, as well as to improve control by tax authorities to prevent fraud and abuse. UCA also highlights the importance of ensuring transparency and fairness in VAT reimbursement to avoid discrimination against small and medium-sized enterprises.
Overall, UCA calls for improving the procedure of VAT reimbursement and ensuring fairness and transparency in this area, which will promote business development in Ukraine and strengthen the country’s economy.