The State Tax Service will strengthen the counteraction against conversion centers and manipulations with the VAT reporting

Press service of the State Tax Service of Ukraine, published 06 September 2019 at 10:06 Chapter: News

The State Tax Service of Ukraine must accumulate all efforts to fill the state budget. For this purpose, a thorough analysis of all external and internal factors that influence the fulfillment of indicators will be done. This was stated by the Chairman of the STS Serhii Verlanov during the first conference-call in the Tax Service.

Serhii Verlanov also outlined two main tasks for the new Tax service. The first is service for the taxpayers. Tax should have all necessary services and in general be innovative as authority service, as well be partner for business.

The second task is the fulfillment of revenue part for the budget which is actively worked out in the Tax service. With the maximum development of services, the voluntary nature of paying taxes will increase, and, accordingly, the revenue part of the budget will increase.

“Style of the new Tax service – talk less and do more. We will work on a result that will be reflected in specific figures - budget revenues” – emphasized Chairman of the STS.

Main measures for filling the state budget by individual taxes and focusing on risks and reserves were identified during the conference-call. Particular attention the STS will pay to the analysis of risks in the tax relations in the segment of the conversion centers and entities that manipulate the tax reporting. Conducted analysis regarding the fulfillment of the indicative indicators shows that there is more failure to meet the budgetary targets in the Large taxpayers office compared to the Head Offices in the regions. For example, in August 2019, the fulfillment of the Office’s indicators was 88.9% while all Head offices completed the indicator in August at 96.1%.

Large Taxpayers Office’s failure to comply with the indicative indicators in 2019 was influenced by several factors.

First, is the low level of working out the payers of the risk category “beneficiary”. As a consequence, there is a negative trend in the formation of tax schemes with final beneficiaries. As a consequence, there is a negative dynamic in the formation of the tax schemes with final beneficiaries.

Second, is the failure to comply with the VAT indicators. In January-August 2019 the STS generally fulfilled the VAT collection indicator at 104.3%, meanwhile the Large Taxpayers Office - only 88.5%. This is the lowest among all structural units of the STS.

Third, is the reduction of fiscal efficiency of the VAT of large taxpayers due to declaration of the tax credit at the level of tax reporting. Particularly, this also happens because of the increase of cases regarding the TD / CA registration with violation of the statutory deadlines, which leads to the formation of the tax credit.

“We will analyze all indicators of budget revenues systematically, hold meetings, receive suggestions from heads of territorial units in order to provide the new Government with funds for maximum in order to implement all planned economic and social programs. At the same time, we will intensify the counteraction against conversion centers and manipulation of the VAT tax reporting” - summed up Serhii Verlanov.