Zhurzhiy: “Under the pretext of energy security, the parliament is dragging “schemer” VAT on coal from the occupied territories into a single administration system”

On Thursday, November 9, the Verkhovna Rada supported draft law #6005-d, which introduces changes to the Tax Code allegedly with the goal of stabilizing settlements in the Ukrainian wholesale electricity market. Samopomich did not support the document with a single vote, because this bill has nothing in common with the European security system.

The real goal behind the bill #6005-d, as noted by Samopomich MP Andriy Zhurzhiy, is an attempt to drag “schemer” VAT on the supply of coal from the occupied territories into a single system of electronic VAT administration.

He explains: “Why did this energy market issue arise and is referred to today? Because the electric energy was produced. Where did it come from? From coal. Where did coal come from? From the occupied territories. Why is there a problem with VAT? Because coal from the occupied territories was not supplied quite legally, therefore, tax invoices were not registered. Why there was no such problem until 1 July 2015? Because there was no e-administration system. Why are we talking about this issue exclusively in relation to 1 January 2016? Because from that moment the VAT benefits for coal supplies began to operate, the VAT ceased to apply. That is, the problem exists now.”

Therefore, according to the MP, if the initiators of the law from the pro-government coalition really wanted to solve these issues, the document would have stated that the benefit applies now as well.

Andriy Zhurzhiy adds, “This bill has nothing to do with energy security, European charters. This is an attempt to drag “schemer” VAT on the supply of coal from the occupied territories to a single system of electronic VAT administration.”

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