Experts warn: new government initiatives may block grain exports

The proposed approaches may lead to manual management of grain and oil exports – by blocking tax invoices and adjustment calculations.

Proposed changes to government documents that regulate the registration of tax invoices may create serious threats to the stable operation of the agricultural sector. This is stated by the experts of the European Business Association (EBA).

One of the main challenges is that businesses that meet the requirement to repatriate at least 80% of export proceeds will now be forced to register tax invoices and adjustments in a general manner. This will require additional time and resources, which may negatively affect the work of large agricultural companies.

Another problem is that checks for unconditional registration of such documents in most cases may end negatively, as enterprises may not fulfill minor conditions stipulated by the new order.

Also of concern is the formula used to calculate the total volume of export operations. It includes the amount of purchases from the so-called “risk counterparty”. At the same time, the decision on the riskiness of this counterparty may be later canceled by the State Security Service or the court, which creates additional risks for exporters.

EBA representatives note that the proposed approach may actually lead to manual management of grain and oil exports due to the possible blocking of tax invoices and adjustment calculations. This, in turn, can cause significant losses for exporters who face wrongful decisions regarding their businesses or operations as risky. Currently, there are no accountability mechanisms for DPS officials for making such decisions.

In addition, the business environment is concerned that the export of products may be stopped indefinitely due to the innovation. This is due to the possible lengthy requests for all primary documents and the delay in the process of removing the risk status.

In response to these threats, the EBA proposes to exclude from the tax invoice blocking mechanism exporters who have a positive history and have not violated the requirements for the return of foreign exchange earnings.

The association has already prepared relevant proposals and sent them to the DPS. She calls on the management of the service to take these proposals into account in order to avoid stopping the export of agricultural products.

Previously, USM wrote that since the beginning of the new season, Ukraine has already exported more than 5.7 million tons of grain.