Yevhen Oleinikov: value added tax became the number one issue in 2020
Value added tax was identified as the primary point of effort last year. This was reported by Deputy Chairman of the STS Yevhen Oleinikov during presentation of Public report of the STS for 2020.
According to him, it is the VAT that has the greatest impact on the shadow economy. Its effective administration allows at least indirectly involve in taxation a part of those incomes which are not covered by other, first of all direct – taxes, particularly the personal income tax.
“Tax credit manipulations are widely used not only to reduce tax liabilities but are also a part of creating opportunities to convert the non-cash funds into cash for further payment of unaccounted unofficial wages.” – stated Yevhen Oleinikov.
Yevhen Oleinikov also emphasized that the STS managed to settle the VAT reimbursement to taxpayers during 2020. Not only the application was fully satisfied as of the 1st of January 2021, but in fact 2.5 billion UAH was reimbursed in advance, ie immediately after the receipt of declarations.
For comparison, the STS reimbursed to taxpayers 4.3 billion UAH less than was claimed for reimbursement by the business as of the 1st of January 2020.
“We performed the comprehensive risk analysis which allowed us to make appropriate conclusions and take timely measures to ensure that the business receives its legal reimbursement. Quite effective work was organized and we began to feel the first information attacks just when we paid very careful attention to the validity of VAT reimbursement.” – emphasized Deputy Chairman of the STS.
Yevhen Oleinikov also informed about the tax risks monitoring system operating during registration of tax invoices, which prevents risks in the financial sphere.
“289 million documents were registered in the system in 2020 for a total VAT amount of 1 trillion 755 billion UAH. At the same time, only 0.42% of them were suspended in terms of quantity, ie less than 1% and 0.96% in terms of the amount – this is approximately 16 billion UAH. Of these, 5 billion UAH for the suspension has never been appealed to the court or the tax authority. Complaints were filed for 11 billion UAH, of which 8 billion UAH was upheld” – stated Deputy Chairman of the STS.
Proper application of the system, according to Yevhen Oleinikov, has expanded the field for activities of honest legal taxpayers, who have provided appropriate revenues to the state budget.
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