April 17 2002, 10:09 Interfax-Ukraine

VAT for farmers. Specials

Interfax-Ukraine reported that the Cabinet started to watch farmer's VAT funds disbursement forcing farmer to transfer VAT to a special individual account.

Serhiy Ryzhouk, the AIC Ministry State Secretary commented on this new governmental decree as of Apr 11 on amending the decree #271 Feb 26, 1999 and canceling #233 decree as of Mar 1, 2002. He said that if farms fail to open special and individual VAT accounts then VAT shall be mandatory taken from the farmer to the budget.

According to him, 2,400 farms failed till now to open special VAT accounts thus hampering the check ups on VAT fund spending efficiency.

"Imposed measures force the farmer to open such accounts because otherwise they will lose 20% of their revenue when doing their sales", said Ryzhouk.

The aforementioned decree also cancelled the re-registration of farmers subject to VAT breaks and instead let them put this VAT funds into purchasing necessary inputs.

Moreover, certain preferences introduced Mar 1 were also cancelled.

Back in February 1999 the government decided to allow farmers use the VAT to buy inputs instead of transferring money to the budget.