President of Ukraine Viktor Yanukovych meet with Chairman of the State Tax Service of Ukraine Vitaliy Zakharchenko to discuss automatic VAT refunds starting from March 15.

The Tax Service Chairman has informed that about half a billion UAH of VAT will be refunded in the first tranche by the new system of automatic VAT refund. 

He also said that full transition to the new system depends not on the Tax Service, but on the transparency of entrepreneurs’ work. According to him, the computer software performing selection of those entitled to automatic VAT refund works without human intervention. 

After meeting the President, the Tax Service Chairman has forbidden the practice of refusing to accept tax accounts from businessmen. Facts of such refusal had taken place before, complicating the life of small and medium sized businesses. 

The Tax Service Chairman has also instructed tax collectors to avoid inspecting any entrepreneurs registered as a natural person, as well as those working under simplified taxation system or single tax system, until July. 

According to Vitaliy Zakharchenko, the Tax Service has already reduced the number of inspections by 32%, and in the second quarter of 2011 there will be 50% less inspections than in 2010. 

He also added that the checks being carried out now are becoming more effective because of more thorough preparation of tax officers for them. 

Among the measures to make doing business in Ukraine easier, Vitaliy Zakharchenko also named the introduction of an electronic service for all the taxpayers.


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