The EEC for the removal of barriers in the taxation of business in the EAEU countries
The Eurasian Economic Commission conducted explanatory work with representatives of the business community on matters of tax policy and administration, including on administrative barriers impeding the mutual trade in the domestic market of the Eurasian Economic Union (EAEU). This was the focus of a roundtable organized by the Department of Financial Policy of the EEC and the Union of Manufacturers and Entrepreneurs of Armenia (UMEA) in Yerevan.
The roundtable participants analyzed the problems arising during export from the Union Member States to Armenia, and business representatives described the current practice of refusal in granting a zero VAT rate. As a rule, such refusals are linked to the fear of not getting a statement on imported goods from an Armenian importer and payment of indirect taxes. And business entities are actually forced to pay VAT twice, in violation of Article 72 of the Treaty on the EAEU. To eliminate such practice, the EEC representatives recommended to conclude contracts of goods sale and include there penalties for the failure to provide or delay in provision of the necessary documents to the exporter.
Another barrier, according to the business community, is a requirement of a number of tax authorities in the EAEU countries to enclose a large number of documents to tax statements. They include notarized documents such as licences, patents, permits and other documents, which are not envisaged in legal acts of the Union. In these cases, it is recommended to enclose to submitted tax statements only those documents or a list of them that are strictly in accordance with the requirements of Annex 18 to the Treaty on the EAEU.
The issues of improving the exchange of information about imports between tax authorities of the Union countries drew special attention. The Department of Financial Policies of the EEC provided the business community with the data on administration of levying of indirect taxes in the EAEU, filling out declarations on imported goods and payment of indirect taxes, its improvement, simplification of VAT return procedures for business entities.
The roundtable participants discussed plans for further cooperation between the Commission and the business community of the Union countries in the field of improving the system of levying taxes in mutual trade, and came to believe that the direct dialogue between officials and business representatives of the EAEU partner countries would promote common understanding of the goals of the tax policy, as well as legislation on taxation and tax administration in the Union.
Press-release at the official Eurasian Economic Commission web-site