Ukraine, CU expand information cooperation

Ukraine’s Cabinet of Ministers has approved a protocol on the procedure for exchanging electronic information between tax authorities of the countries belonging to the Customs Union (CU) and Ukraine, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The purpose of ratification the protocol on the exchange of tax information - to build a system for managing indirect taxes – will allow Ukraine to monitor and document management of businesses while generating statistical information on the volume of bilateral trade between Ukraine and CU members.

Analysts say this is very important because it eliminates a number of technical barriers in trade with CU states and Ukraine. Approval of the protocol will preserves the level of trade and economic relations with the CU, which translates to jobs, wages and budget revenues.

Government experts say electronic document invoices significantly improve the quality and efficiency of data collection, simplifies and speeds up procedures for inspections of taxpayers that have a positive impact on the efficiency of the administration of value added tax (VAT) between Ukraine and the Customs Union.

The exchange of information between the tax authorities of the participating countries will be in the form of registers of applications in the form of files in accordance with the requirements of data received in electronic form. Tax authorities are required to provide and ensure the completeness and accuracy of information on the amount of indirect taxes paid to the state budget.

In accordance with Article 2 of the protocol, communication will take place on a monthly basis, not later than the 15th day of the month following the month in which the mark has been made of the tax authority on the application for import of goods and payment of indirect taxes.

Experts say trade turnover this year between Ukraine and CU members will total 60 billion USD. The volume of foreign trade of CU states with third countries amounted to 527 billion USD in 2013.

Exports of CU countries to third countries in 2013 amounted to 333 billion USD, while imports amounted to 194 billion USD.

There has been a decrease in the export potential of the CU countries this year. Russian exports fell by 0.7% to 276 billion USD, while Belarusian exports fell by 37.0% to 13 billion USD. Kazakhstan's exports fell by 6.4 % to 44 billion USD.