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Bill about change of VAT refund procedure registered in parliament
A draft law about amendments into the mechanism of VAT refund from the state budget has been registered in Verkhovna Rada (Parliament of Ukraine).
According to the author of the bill, the People's Deputy of Ukraine V. Horbachov, the main idea of the document is that the VAT payer offsets its negative VAT balance on account of its other tax obligations.
The currently effective law about value added tax stipulates that reimbursement of VAT by way of reduction of payments of other taxes, duties (obligatory payments) is prohibited. The new bill proposes to change this norm: such kind of VAT refund is allowed as soon as the payer has accrued the tax, and it is registered in the tax declaration.
Explanatory note to the draft law states that adoption of this bill will result in reduction of the sums of unlawful VAT refunds from state budget and will ease the tax burden.