June 22 2005, 14:22

VAT will not be refunded to grain traders before July 1 - state tax administration

State Tax Administration (GNAU) will not be able to fully refund VAT to grain traders before July 1, 2005, said Deputy Head of GNAU Nikolay Katerinchuk. According to his words, the declared sums are exaggerated. So time is needed to make examination of a sum on every enterprise.

N. Katerinchuk pointed that VAT refund problem was currently under consideration.

Also he said that Ukraine is likely to set VAT rate for agricultural producers at 7 percent in the future as it is now in Poland.

Earlier, on June 14, Director General of Ukrainian Grain Association (UZA) Vladimir Klimenko said if VAT would not be refunded to grain traders before July 1, then the traders would be forced to cut purchasing prices by at least $17 per tonne of grain.

According to V. Klimenko, VAT arrears to grain traders total around $1 million.