14:32 09.12.2014

Companies drawing up claims to Constitutional Court of Ukraine over introduction of VAT accounts

2 min read

Kyiv, December 9 (Interfax-Ukraine) – If the electronic administration of value added tax (VAT) is introduced from January 1, 2015, Ukrainian companies will file claims to the Constitutional Court of Ukraine.

Financial auditor at SvitLand Development Alex Sutovsky said at a press conference at Interfax-Ukraine on Monday that Ukrainian authorities have not presented a detailed explanation of contentious issues that are part of the proposed VAT electronic administration.

"If the law takes effect we'll take all the required legal and non-legal steps, including the submission of claims to the Constitutional Court of Ukraine through competent members of parliament demanding the cancellation of the law. If common sense does not work in Ukraine, we'll initiate a claim to the European court and accompany it by the explanation campaign among investors in Ukraine and abroad: why there is no sense to start operations in Ukraine in this situation," he said.

In turn, a managing partner of the Poberezhnyuk & Partners Law Group, Larysa Poberezhnyuk, said Ukraine often passes non-transparent laws that sometimes require a considerable consultation of specialists to explain to businesses how to operate under new laws.

"This law [on the introduction of VAT accounts] is one of the most non-transparent, as today, on December 8, we still cannot understand how the law will work… and this creates a very bad business climate," she said.

As reported, the law on electronic administration of VAT was passed in late July 2014 and will take effect on January 1, 2014. The new system will require the urgent sending of VAT to VAT accounts which are to be opened by each company with the State Treasury Service, while the current VAT administration system foresees the accruing of taxes at the end of a reporting period.

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