Rus News Journal

The government wants to return itself the VAT

Minister of Finance Alexey Kudrin at today`s session of the government will try to explain to prime minister Michael Fradkov why in 2006 the plan of gathering of the VAT will not be executed. The Ministry of Finance considers that a failure of gathering of the VAT - result entered in 2006 owing to amendments to the Tax code. The Ministry of Finance suggests to limit number of payers of the VAT only to those companies which operate not less than year and have a sufficient turn.
to discuss problems of the VAT the government this year did not plan. All amendments to the Tax code (for example, about introduction zajavitelnogo an order of return of the VAT to exporters since 2007) for a long time are brought, however is unexpected for the problem Ministry of Finance were found out with practice of gathering of this tax. Thus that receipts of all other taxes grow (so, the profit tax in January - September is collected on 40 % more than for nine months 2005), the plan under the VAT in 2006 will not be executed. According to the Ministry of Finance, at confirmed by the law on the budget of 2006 to the sum 1,124 trln rbl. it will be really collected 958 mlrd rbl. the Shortage - 166 mlrd rbl. ($6 mlrd).

In the report to the today`s session which is available at, the Ministry of Finance explains shortage the changes of the tax laws which have come into force since January, 1st, 2006. It is a question of transition to a charge method at which payment and VAT compensation are carried out at goods shipment, instead of at reception of money for it. The Ministry of Finance, unlike FNS, does not assert that the innovation has led to blossoming of criminal schemes (the deduction under the VAT is given now even before payment of the transaction which can appear fictitious), and believes that between deductions and tax receipt in state treasury was simply formed time rupture which will be compensated later.

Other reason of a shortage - VAT offset on capital investments is carried out now by the month, instead of after object input in operation. At last, and the Ministry of Finance complains about rapid growth of compensation of the VAT to exporters (increase in 1,6 times in comparison with 2005). The increase reason became no more sensitive the relation of officials to exporters (VAT compensation should be beaten out, as before, at FNS through court), and growth of physical volumes of export, and also the evolved prices for gas, oil and metals. The fault for default of the law on the budget the Ministry of Finance in the document does not recognise. negative dynamics of receipts of the VAT not the unexpected phenomenon - officials of the Ministry of Finance explain.

the Ministry of Finance obviously was mistaken in forecasts and now suggests to wait a transition period, - tells the vice-president of committee RSPP on a tax policy Sergey Beljakov. - in practice it means that it shifts the problems on businessmen. The matter is that from - for a failure with gathering of the VAT tax departments now everywhere refuse its lawful return to the companies. Often - ignoring the decisions of the courts which have been taken out in favour of tax bearers .

Using a situation, Alexey Kudrin`s department offers a new portion of amendments in the Tax code, connected with the VAT. As already wrote, within the limits of struggle against firms - a something ephemeral the Ministry of Finance since 2008 wants to enter the mechanism of special registration of tax bearers of the VAT. The right to pay the tax and applies for compensation all companies can not, and only what operate not less than year and have the turn exceeding certain size.

the Ministry of Finance yet has not defined the size of this threshold. In the report the sizes of a turn necessary for registration of firm as the payer of the VAT in the EU countries are resulted only. In Great Britain it 25 thousand, in France - 76,3 thousand for the goods and 51,1 thousand for services, in Germany - 16,6 thousand Before the deputy minister of the finance Sergey Shatalov in interview declared that, at a rough guess, after introduction of a threshold from 2 million legal bodies registered now in club of payers of the VAT will enter only 300 - 400 thousand

According to experts, the small companies first of all can suffer from the next innovation of the Ministry of Finance. Without being the payer of the VAT, they cannot receive a deduction, and the tax paid to suppliers will lay down on expenses. Will get the goods at them it is unprofitable: the buyer also loses the right to a deduction.

numerous problems with the VAT gathering, the governments taken out on today`s session, can add arguments to head of expert management of the president Arcady Dvorkovichu preparing the bill of replacement by the VAT by the tax from sales. It is not excluded that to the former idea of decrease in the rate of the VAT with 18 to 13 % for stimulation of growth and number reduction moshennichestv can return and prime minister Michael Fradkov. As the Ministry of Finance while on correction of positions of the Tax code does not offer any measures, but explains that the factors which have provided a shortage of the VAT in 2006, can influence level of receipts till 2008 .