Yesterday the President of Ukraine signed the Law* introducing important changes to the Tax Code in respect of VAT refund
rules.
The main amendments effective since 1 January 2015 are as follows:
• The current procedure for a general and automatic VAT refund will continue to apply.
• The VAT refund will be payable in cash only. If taxpayers decide not to claim cash VAT refund, they should be able to carry forward the respective VAT receivable as a VAT credit for the next period.
• One of the criteria for automatic VAT refund has been changed. In order to qualify for an automatic VAT refund, the taxpayer should have non-current assetswith a book value exceeding 3 times the amount of VAT claimed for the refund (previously it was 12).
We will continue to monitor the situation and keep you updated on the issue.
*The Law “On introduction of amendments to the Tax Code of Ukraine regarding improvement of taxation of investment activity” # 1690-VII dated 7 October 2014