You're reading: Finance Ministry proposes legislating transition period for VAT accounts prior to April 1 2015

Ukraine's Ministry of Finance in the concept of reforming taxation laws has taken into account a number of proposals from businesses for the implementation of electronic VAT administration, but insists on its full implementation from Jan. 1, 2015 in the light of providing transition period for payers until April 1.

According to the documents available at Interfax-Ukraine, the Finance Ministry proposes to resolve the issue of VAT refunds unduly credited to electronic invoices at the request of payers.

The original version of using VAT accounts in the system did not consider the balance of budgetary compensation and negative values, which were declared in the period up to Jan. 2015, while the new wording proposes taking into account these values by increasing the size of VAT, on which payers have the right to register tax invoices/adjustment payments to invoices registered in the unified register.

However, that right will be granted without inspections only in the amount not exceeding 6/12 of the volume of tax returns for the previous four quarters. The remaining amount – only after checks.