Kyiv, August 4 (Interfax-Ukraine) – The implementation of electronic VAT administration will prevent the creation of corruption schemes and the formation of the shadow economy sector, Head of the State Fiscal Service of Ukraine Ihor Bilous has said at a press conference at Interfax-Ukraine.

"The existing mechanism of charging, payment and administration of VAT creates significant opportunities for corruption abuse, which, in turn, discredits VAT as an effective form of taxation and significantly reduces its fiscal efficiency. Today VAT accounts for about 40% of all tax revenues and I am convinced that its possibilities have not been exhausted," he said.

According to the head of the State Fiscal Service, the electronic administration system will consist of three main elements: a single electronic register of tax invoices, a separate bank created by the state for servicing VAT payments, which will automatically open accounts for all VAT payers, and a customs database for imports and export of goods.

Bilous also noted that the unified register of tax bills would contain a new condition for the registration of tax bills: tax payers have the right to issue tax invoices to buyers only to the extent of their tax credit. If the amount of loan on VAT and ending stocks on the account are insufficient, payers will not be able to register the issued invoice in the unified register of tax bills, accordingly, their customers will not be eligible for tax credit.