was held at the Lviv Oblast State Administration. The meeting was held by the First Deputy Head of the Lviv Oblast State Administration, the Deputy Head of the Commission – Mr. Valeriy Pyatak. The representatives of business, the European Business Association (Association was represented by Mr. Lars Vestbjerg, the Chairman of the EBA Western Ukrainian Branch Board and Ms. Nataliya Klymko, Regional Manager) and authorities (Security Service of Ukraine, Oblast State Administration, Treasury, Customs Service, State Tax Administration etc.) were present at the meeting.
During the meeting the following problematic issues in tax field were highlighted:
- reimbursement of VAT accumulated during the first 12 months of activities for newly established companies;
- ambiguity of interpretation of the concept “previous period” (according to the legislation);
- investors’ cooperation with 4-8 intermediaries (90% of cases - VAT is not confirmed because of intermediates with shady reputation);
- optimization of profit tax.
Businessmen individually described present situations on VAT refund of their enterprises and stated that representatives of tax administration or inspection often break terms of making cross-check-up and decrease some amount of VAT to be refund without reasons.
The EBA representative informed the participants about the first step taken by the Association to solve the problem, i.e. submission of the official letter on behalf of the EBA to the President, Prime Minister and State Tax Administration of Ukraine describing the problem of VAT reimbursement accumulated during the first 12 months for newly established companies. Lars Vestbjerg also suggested the Commission members to prepare an overview of their respective problems and suggest solutions which could be submitted to state authorities.
The representative of the company Leoni informed the participants about the plans of businessmen working with export and import operations to organise a round table meeting under the auspices of the European Business Association on November 16 for discussion of problems and suggesting relevant amendments into existing legislation.
As a result, the agreement to prepare a common letter describing problems and ways of their solution which will be sent to central authorities, namely STA, Government, the Ministry of the Economics etc. was made.