was held at the STA in Lviv oblast. The following persons were present at the meeting:

-     Mr. Lars Vestbjerg, the Chairman of the EBA Western Ukrainian Board;

-     Mr. Andriy Beyzyk, the Deputy Chairman of the EBA Western Ukrainian Board;

-     Mr. Bo Jorgensen, the Branch Board member, adviser to the Investment Fund for Central and Eastern Europe;

-     Ms. Nataliya Klymko, the Regional Coordinator of the EBA Western Ukrainian Branch.

 

The following main problems concerning VAT refund, which the EBA member-companies doing tolling operations face, were discussed during the meeting:

 

1)      “freezing” of VAT accumulated during the first 12 months for newly-established companies, which will not sell their products in the Ukrainian market;

2)      suspension of the VAT refunds process for the companies with foreign investments after some changes in the governmental structures.

 

According to Mr. Bo Jorgensen, transparent cooperation with the STA is very important, since during only 2005, the Danish Investment Fund for Central and Eastern Europe has been realising 18 investment projects in Ukraine, most of them located in Lviv oblast (with investments of more that 100 million UAH). That is why, positive cooperation with STA will promote activities of existing foreign companies and attract new potential investors. Otherwise, investors will transfer their investments to another countries.  

 

Mr. Lars Vestbjerg also declared, that changes should be done as soon as possible, before the Investment Forum in Lviv, as it could cause a negative influence on investment climate of Lviv oblast and Ukraine as a whole.  

 

Mr. Khylyuk affirmed the participants, that STA in Lviv oblast supports investors and is ready to cooperate with companies, which “are honest tax payers and operate transparently”. The Chief of the STA also informed the participants about plans of STA to make “a white list of companies” which would receive VAT refund regularly, on time and in more frequent terms (only documentation control will be applied during this process).

 

In the end it was agreed to hold the second round table meeting of the EBA representatives with the STA authorities to solve technical (reasons for not refunding of VAT and ways of their solution) and methodological (proposals of changes to the legislation) issues concerning VAT refund in the middle of September, having analysed current situation of each manufacturing EBA member-company.