Destination country VAT to promote Belarus trade with Russia :: Charter'97 :: News

The order of VAT levying on the destination country principle introduced in the Belarusian trade relations with Russia from January 1, 2005 will promote mutual trade, in the view of Belarusian Vice Prime Minister Andrei Kobyakov who talked to reporters on Monday.

To substantiate his words he cited the example of the Milavitsa Company that has already increased the volume of its export to Russia by 30-40 percent, as compared with the level of last year.

Even in January, despite certain difficulties caused by long Russian Christmas holidays and poor informing of Russian market participants about the new order of VAT levying the volume of Belarusian export to Russia will be no less than last year’s indicator, Kobyakov said answering an Itar-Tass query.

Belarusian authorities, he pointed out, are displaying particular attention to all aspects related to the new order of VAT levying in trade with Russia.

Russia is the main trade partner of Belarus. It accounts for 58 percent of the Belarusian export.

“It is our main source of raw materials and the market of sale of our goods,” the Belarusian vice prime minister stressed.

Before January 1, 2005 the “country of origin” VAT payment principle had been in effect in mutual trade of Belarus and Russia.

According to official Minsk, losses of the Belarusian budget as a result of this principle of VAT levying accounted for at least one billion U.S. dollars.