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Kazakh oilseed processors declare the need to make changes in terms of VAT refunds in order to restore the financial stability of oil refineries. This was announced at a press conference of the National Association of Oilseed Processors (NAPMC) on August 11.
As Tolegen Aitbaev, the chief accountant of one of the largest oil refineries in the country, Shymkentmai JSC, noted, the current VAT refund rules significantly worsen the financial stability of export-oriented oil and fat enterprises.
“For example, within the framework of the current VAT Refund Rules, oil refineries have not been able to return excess VAT amounts for several years, since the Pyramid analytical report checks for violations not only of the Applicant’s direct suppliers, but also suppliers of the 2nd, 3rd and subsequent levels. Ultimately, violations, even formal ones, reduce the amount of the VAT refund,” said a representative of the oil plant.
Thus, more than 3 billion tenge has already been frozen on the accounts of Shymkentmay JSC of the State Revenue Committee of the Ministry of Finance, the chief accountant of the enterprise specified.
Oilseed processors consider it an abnormal situation when conscientious taxpayers pay the bills of dishonest taxpayers, and the tax authorities, instead of administering, identifying and eliminating VAT violations, choose a simple option for themselves - not to return excess VAT to law-abiding taxpayers.
In this regard, NAPMK proposes to introduce a number of changes to the legislation.
First, for producers of goods of own production, it is proposed to reduce the share of sales turnover taxed at the 0% VAT rate (export) in the total taxable turnover from 70% to 50% (this requirement is reflected in subparagraph 2 of clause 2 of article 429 of the Tax Code of the Republic of Kazakhstan).
Secondly, NAPMK insists on the need to limit the Applicant's liability (only for producers of high value-added processed products) for the refund of excess VAT by the amounts of violations of suppliers of only the 1st level.
