Ukrainian Economy Ministry proposes linking VAT refund for grain exporters with forex proceeds' return

MOSCOW. Jan 29 (Interfax) - The Ukrainian Economy Ministry proposes adding a regulation on linking VAT refund for grain exporters with the return of their forex proceeds to a bill taken as a basis with amendments to the Tax Code and other laws on improving the implementation of foreign economic operations for the export of certain goods, Ukrainian media reported, citing lawmaker Yaroslav Zheleznyak.

The document he has made public shows that the Economy Ministry proposes introducing the Export Security Regime, under which exporters of grain and oilseeds are obliged to pay VAT on exports of their products at the domestic rate until the return of their forex proceeds.

"In this order it is needed to use the possibilities of the State Agrarian Register regarding the confirmation of compliance of the volume of goods that are exported with the legally manufactured and purchased volume of goods according to the data of the system of monitoring the origin of agricultural products," the document said.

The Economy Ministry also proposes empowering the government to extend the Export Security Regime to additional types of raw materials, Zheleznyak added.

Moreover, the ministry wants to implement the limit of unconditional registration of export tax invoices. The document noted that the government should determine the procedure for such a limit.

At the same time, given that this system is currently under active formation, it is proposed stipulating this mechanism at the level of the Ukrainian Tax Code at the stage when the State Agricultural Register will contain a sufficient amount of information.

In addition, the Economy Ministry proposes setting minimum prices for several types of goods, whose list is defined by the government.