Government adopts decree to create open register for VAT reimbursement


The Minister of Finance is continuing to implement steps aimed to ensure the transparency of all processes in public finance management and relations between the tax authorities and tax payers. This development should contribute to the eradication of corruption in the tax system.

With this purpose, the Ministry of Finance supported the adoption of amendments to the tax legislation in the end of last year which served to create two open registers with the identical system of time-bound VAT reimbursement (Law of Ukraine No. 909 dated 24.12.2015). These registers should only contain VAT reimbursement requests from companies which comply (for the first register) and do not comply (for the second registers) with criteria listed in clause 200.19 of article 200 of the Tax Code.

Following these law amendments, the Government adopted a decree (on February 11) which had been elaborated by the Ministry of Finance to enable the set-up of the open registers for VAT reimbursement. This decree sets a procedure for the update of the registers as well as the form of reimbursement applications.

The Procedure stipulates the following:

• List of data contained in the registers;
• Automatic entry of applications in the respective register to be effected within the operational day in chronological order;
• Publication of the registers on the official website of the State Fiscal Service;
• Reimbursement of the agreed amounts in chronological order and in accordance with the inserted applications.

"For many years, the selective and non-transparent VAT reimbursement in Ukraine has created opportunities for corruption in this field and has been one of the main issues for the critics of the investment climate in Ukraine. We will remedy this once and for all by implementing transparent registers on VAT reimbursement in chronological order and publishing them online", Ministry of Finance Natalie Jaresko said.

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