Ship repair without VAT

Senators propose to give tax benefits to shipbuilders the Federation Council prepared amendments to the Tax Code, enshrining the right to pay off on value added tax (VAT) for enterprises of the ship repair industry.

Amendments should consolidate the possibility of exemption from VAT operations for the repair of ships at their bases in the ports. “Such a norm in the Tax Code is already there: since 2005, ship repair enterprises have enjoyed this right. However, in 2007, the Supreme Arbitration Court (you) decided, according to which the right to benefit arises only with emergency and unscheduled repairs. Accordingly, all enterprises that did not pay VAT during conventional repairs turned out to be violators of the law, and they were given tax, penalties and fines, ”said Evgeny Bushmin, one of the authors of the amendments, chairman of the budget of the Federation Council.

According to him, enterprises are not able to pay off tax debt, so in the near future they can be recognized as bankrupt. “We propose to clearly fix in the NK that the right to a benefit will apply to all types of repairs and have been valid since 2005 in order to prevent bankruptcy of the 17 largest enterprises,” said Evgeny Bushmin. The amendments are ready, the senators have already addressed their initiative to President Dmitry Medvedev, the reaction of which, according to Evgeny Bushmin, was “very good”. According to the senator, in the conditions of the economic crisis, it is precisely point tax bastards that can make it possible for survival and development of individual industries. “It is impossible to reduce VAT for everyone now: tax revenues to the budget are reduced, and the state must fulfill social obligations to citizens,” says Evgeny Bushmin.

02/23/2009 / Ksenia Batanova