Today People’s Deputy of Ukraine, Leader of the European Party of Ukraine Mykola Katerynchuk has registered in the Parliament the Draft Law of modification of the Law of Ukraine “About the Tax to the Added Cost” (concerning the taxation of operations on services granting to non-residents) (Reg.¹ 6224 of 3/25/2010).

 

According to the author, acceptance of the given draft law is caused by the necessity of attraction of foreign financial resources, developments of the domestic market of services granting, stimulations of the external economic relations, and improvement of tax administration for the services which place of destination is beyond the borders of Ukraine.

 

Since 2006, the State Tax Administration of Ukraine, considering vagueness of interpretation of norms of the Law of Ukraine «About the Tax to the Added Cost» concerning the taxation of services which are offered to non-residents, has given out some explanations of positions of the subparagraph «d» point 6.5.  the Law of Ukraine «About the Tax to the Added Cost» with inconsistent positions. At the same time the Committee of the Verkhovna Rada of Ukraine on the tax and customs policy in the letter ¹ 04-27/572 of 6/2/2008 specified that the Law «About the Tax to the Added Cost» is the Law of direct action and absence of a concrete definition of services cannot limit application of the rules of the subparagraph «d» point 6.5.

 

Mykola Katerynchuk considers that «acceptance of the offered Draft Law will promote increase of domestic business competitiveness, removal of obstacles for investment activities, increase in currency receipts to Ukraine and harmonization of tax laws of Ukraine with EU legislation».