Ukraine's government has resumed the use in 2010 of a model of granting value-added tax refunds to grain exporters through the Agrarian Fund that was utilized in 2009.
This is stipulated in cabinet resolution No. 140 dated February 11, 2010.
The procedure will not only cover exporters of grain, flour, spirit and sunflower oil, but the exporters of farm products.
As was reported earlier, Ukraine's government in February 2009 approved an algorithm for reimbursing VAT to traders with grain through the Agrarian Fund. The model suggested that the Agrarian Fund should conclude contracts on the agrarian exchange with traders for the sale of grain at average weighted prices calculated on the basis of previous three trading sessions, but they should not be lower than the purchase price together with storage costs. The offset model was handled via the State Treasury's accounts. Later on, the model was extended to flour and ammonium nitrate.
According to experts, the state's delayed VAT refunds to grain traders currently exceed UAH 3 billion, being UAH 400-500 million owed to separate companies. This, according to analysts, has a negative impact on grain export dynamics.
