VAT UkraineJanuary 29, 2011
Well dear readers, probably one of the biggest gripes of corporations in Ukraine, both domestic and foreign, has been the refunding of VAT when it has been appropriate…..and in an export driven economy it is quite often appropriate.
If the following statement by the Prime Minister is true, one of the biggest concerns of international direct investment in Ukraine will seem to be addressed:
The Tax Service of Ukraine from March 1 will be ready to refund the value added tax (VAT) automatically, Prime Minister Mykola Azarov has said.
“For those companies who are willing to operate openly and transparently, tax authorities are ready, literally from March 1, to automatically recover the VAT,” Azarov said. The tax code, which came into force on January 1, 2011, provides for penalties against tax authorities for late VAT refund.
VAT has been of more concern to those who have asked me about investment in Ukraine than corruption. Let’s hope that VAT is returned in a timely fashion as per the plan.