MINSK, 25 April (BelTA) – Proposals to equalize value-added tax rates and introduce one single rate as large as 16-18% were made during the regular session of the interagency working group in charge of preparing proposals on the comprehensive revision of Belarus' Tax Code on 19 April, BelTA learned from the Belarusian Tax and Duties Ministry website.
The proposal was put forward by the Minsk City Union of Entrepreneurs and Employers. The business association believes that the universal VAT rate will enable equal conditions for VAT payers. Meanwhile, the Belarusian Union of Taxpayers made a counter proposal: it is necessary to reduce the preferential VAT rate from 10% to 5.5-7% for individual kinds of commodities and services just the way it has been done in France.
Participants of the session decided to further study the proposals by calculating the effect the introduction of VAT rates as large as 16%, 18%, and 20% may produce as well as the effect the step may have on the consumer price index. The Belarusian Union of Taxpayers was instructed to prepare the necessary information so that members of the interagency working group could properly evaluate the proposal on reducing the preferential 10% VAT rate on individual products and services.
Participants of the session also discussed some matters concerning individual provisions of article No.102 “Value-added tax” of Belarus' Tax Code. In particular, they discussed the terms and procedures for justifying using zero VAT, the possibility of using 9.09% and 16.67% VAT rates in accordance with the article, and other matters.
Participants of the session also discussed provisions, which determine conditions, procedures, and the term for returning VAT sums to foreigners, who buy products from shops, and a number of regulations on calculating VAT on selling products and services. Property rights were also discussed.
