Within the Association agreement with the EU Ukraine will have five years to adapt its tax legislation to the EU norms, deputy minister for income and duties Andriy Ignatov told a press conference, ForUm's correspondent reports. 

According to him, this transition period is provided by one of the clauses of the Association agreement. "Thus, article 351 stipulates for strengthening of cooperation, aimed at improvement and development of tax system of Ukraine in general and fight against tax frauds in particular.

Moreover, Supplement XXVIII stipulates that Kyiv must eventually adapt its fiscal legislation to the relevant legislation of the EU, while Directive 2006/112/ЕU provides for adaptation of VAT system," the official informed. 

According to Ignatov, legal field of the European Union, regulating VAT, is based mainly on Directives. "Directives set general rules, which must be stipulated in the national legislations of each country-member in order to prevent tax frauds or evasion."   

The deputy minister also informed that the adaptation process of domestic legislation to the EU legislation is stipulated by the article 51 of the agreement on partnership and cooperation between Ukraine and European Communities and their country-members of June 14, 1994. "To realize the program of adaptation of the legislation the government works out plans of action every year, namely draft bills and amendments to be approved by the parliament," he summed up.

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