At the same time, the VAT on imports and purchases of resources is paid in full, while it is impossible to make offsets with the VAT credit. As a result, the state creates barriers to investment and job creation, because the VAT credit is formed from the funds paid, which must be taken into account when calculating VAT and reimbursement.
«The consequence of VAT refunds is the absence of a significant part of working capital, which agricultural producers could count on. For example, agrarians could now buy the grain trucks needed to transport grain for export. From each car they would have to pay on top of 20% VAT, which should go to the calculation of VAT credit. As a result, for every 10 cars, it would be possible to buy two more cars at the expense of VAT refund. At the same time, each additional car is 1−2 new jobs for drivers, paid taxes from wages, additional foreign exchange earnings and a plus to GDP. However, this does not happen because of the non refund of VAT», — explains Roman Slasten, Director General of UCAB.
If the situation with VAT refunds to exporters does not change in the near future, the difficult situation for farmers will worsen. Especially considering the fact that now is the harvesting season of the current year, which soon agricultural producers will also start to export.
This all may eventually lead to the fact that the real agricultural VAT will be sold in the market at a discount, «atypical export» will begin again, and, yes, the applications for refunds will decrease, but the VAT revenues to the state budget will fall considerably.
UCAB appeals to the authorities to solve the problem of the VAT normal administration as soon as possible and to resume VAT refunds in order to support investments in the development of the agricultural sector.
PigUA.info according to agravery.com