These and a number of other serious changes are envisaged by a package of amendments to the regulatory framework prepared by the Ministry of Finance, which was approved by the government on Wednesday. They will be introduced into ten by-laws regulating tax and customs aspects of enterprises’ activities.
Thus, a new standard form of application for value added tax refund will be introduced into the Regulation on Value Added Tax Reimbursement. This will eliminate unnecessary bureaucracy and speed up the refund, the Ministry of Finance explains. Currently, companies submit two separate applications, which lengthens the tax refund procedure and creates an additional burden on the State Tax Service.
The project also envisages an increase in the limit of the amount of VAT allowed to be refunded to companies, in accordance with Article 1016 of the Tax Code. It will increase from 20% to 70% of the declared amount of tax refund. It should be noted that initially the authors of the draft proposed to raise the refund threshold to 50%.
As the authors emphasize, this change will allow taxpayers to reinvest more in the development of enterprises and ensure the continuity of the financial flow.
In addition, the document specifies the deadline for non-profit organizations to apply for a 2% income tax deduction made by individuals in favor of public organizations or religious cults. It is set for the period from June 1 to September 30 of each year. This will allow for timely verification of applicants’ documents, as well as the presence or absence of indebtedness of beneficiaries to the state budget.
The Regulation on the procedure for repayment of tax liability through reimbursement and (or) refund is amended to establish that it should be carried out at the expense of the budget under the economic classification related to the initial collection.
