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Tax inspectors crack down on e-businesses

Last week, Sergey Lekar, Assistant to the Head of STAU, and Pavel Sydelev, Head of the Association of E-business Members of Ukraine, met to discuss effective mechanisms for controlling e-business.  A particular issue highlighted during the meeting was the matter of closing down ‘one-day shops', as they are usually not registered and do not comply with consumer protection regulations.

The STAU's interest in e-businesses is understandable. According to unofficial information, nearly 10,000 e-businesses are registered in Ukraine and only 5,000-6,000 of them really exist. This year, the approximate turnover from purchases made over the internet may rise to 1 billion dollars. According to Sydelev, the market value could more than double over the next few years.

Taxation of e-businesses is one of the World Bank's requirements as part of the ‘Tax service modernisation' project. Europeans are concerned that Ukraine's liberal legacy may become a platform for European e-businesses to avoid payment of tax. Until recently, this was impossible, as Ukraine wasn't a member of the WTO and Europeans didn't trust the national bank system.

Source: www.banker.ua