There is an idea to tie VAT refunds to the return of foreign currency earnings: the Rada and the Cabinet of Ministers are finalizing the legalization of grain exports
Kyiv • UNN
The Ukrainian government and the Verkhovna Rada are developing a strategy to combat "black" grain exports, including a possible linkage of VAT refunds to the return of foreign currency earnings.
The government and the Verkhovna Rada continue to look for mechanisms to combat the export of "black" grain. One idea is to link VAT refunds to the return of foreign currency earnings. This was stated by MP Mykola Kucher in a commentary to UNN.
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He reminded that at the end of November, the Verkhovna Rada adopted in the first reading a draft law on de-shadowing grain exports (10169-2 - ed.). However, the document does not solve the main task facing the government and the Verkhovna Rada - ensuring the return of foreign exchange earnings. Therefore, consideration of the draft law was suspended, and its text is currently being finalized by the CMU and the Tax Committee.
The CMU, together with the committee (the Verkhovna Rada Committee on Finance, Taxes and Customs Policy - ed.), is trying to solve this problem. For example, the CMU has an idea to link VAT refunds to the return of foreign currency earnings. There will either be a new bill or the government will submit a revised one
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It should be noted that the draft laws on de-shadowing grain exports were based on the order of the head of the Odesa Regional State Administration, Oleh Kiper, dated August 18, 2023. A week before, a new corridor had started operating, and it turned out that some of the grain exported was not accounted for. Therefore, the UAC decided to develop and to introduce a "white" export mechanism, proposing to register tax invoices before exporting grain. It somewhat complicated the export process and caused dissatisfaction among market players. Now they have to submit declarations in advance, and the regulatory authorities have to check them before the ship leaves Ukraine.
On the one hand, the new rules have complicated the process of exporting grain, and on the other hand, they have also made it more difficult to withdraw funds from the country, which according to various sources are estimated at billions of dollars.
Draft law #10169-2 is aimed at exporting white grain and generally does not contradict the scheme proposed by Kiper, Kucher says. But now the question is whether it will be enshrined in law.