The Ministry of Finance has developed a solution to make the registration of tax bills easier for agricultural companies. The reason for this step is the increased number of terminated tax bills which were submitted by agricultural companies.What’s it about? The system for the termination of the registration of risky tax bills makes it possible to prevent VAT manipulations amounting billions of hryvnas and does not allow non-diligent tax payers to receive tax credits. But in some cases, the system also suspends tax bills submitted by diligent businesses including agricultural companies.
The Ministry of Finance monitors the operation of the system on daily basis with a breakdown by different industries. Thus, a significant increase of the number of terminated tax bills and/or corrective calculations for companies representing the real sector of the economy has been detected. The affected companies mostly represent agriculture as well as forestry and the fishing industry. Terminated tax bills and/or corrective calculations for these companies accounted for 5% of the total number of such cases in June 2017. In July and August 2017, they accounted for 18% and 29% of the total number of termination cases respectively.
Following numerous meetings and discussions with the representatives of agrarian business, the Ministry of Finance developed and agreed a solution which will enable the State Fiscal Service to improve the operation of the system, in order to prevent the termination of the tax bills submitted by real-sector companies.
To make the process simpler, the Ministry of Finance prepared the following amendments to the applied criteria.1.For all tax payers: tax payers will be able to submit documents (transaction card) prior to effecting the respective transaction; this card shall be examined within 10 working days. If this card is approved by the SFS, tax bills/corrective calculations for the respective transaction shall not be stopped.
2.For tax payers from the agrarian sector: the transaction card shall be automatically approved by the system without examination by the SFS, if:
2.1. The respective agrarian manufacturer is included in the Register of the receivers of the budget subsidy according to the Law of Ukraine “On the State Support for Agriculture in Ukraine”;
2.2. The respective tax payer applied a special taxation mode as per December 31, 2016, according to art. 209 of the Tax Code of Ukraine (valid as per December 31, 2016);
2.3. Tax payers meeting the criteria as per 2.1 and 2.2 have their own or leased land with the total footage starting from 200 ha as per January 1, 2017, which was declared before February 20, 2017; another criterion: in the period starting from January 1, 2017, these tax payers did not change the founder and the manager of their company at the same time. What’s the benefit?
After the implementation of the approved changes, diligent tax payers operating in agriculture will be able to have their tax bills / corrective calculations registered without being suspended. All amendments are ready and are now being agreed with the other central bodies of executive power.