Representatives of the Ministry of Finance Participated in a Seminar to Study the International Experience in the Field of VAT Taxation of Investment Gold Transactions

During November 4-6, 2020, the second three-day practical seminar and online discussion were held with the working group of the Ministry of Finance, the NBU and the State Tax Service. This year the name of the seminar was "Provisions of the Council Directive 2006/112/EC of 28 November 2006 on the common system of value-added tax to be implemented into national legislation on investment gold".

The event was organized by the project «Good Financial Governance in Public Finance III», implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the Government of Germany, at the request of the Ministry of Finance of Ukraine.

German VAT expert from the Tax Administration (Düsseldorf) and advisor to the European Commission Mr. Marcus Drost presented international experience (EU) and German practices in this area to Ukrainian colleagues, namely, representatives from Tax Policy Department of the Ministry of Finance; Open Market Operations Department of the NBU, Accounting Department of the NBU, Office for European Integration and International Programs of the NBU, Legal Department of the NBU, State Treasury of Ukraine and Legal Regulation Department of the State Tax Service.

Ukrainian experts were particularly interested in the issues of German experience in implementing the provisions on Investment Gold Taxation in the Council Directive 2006/112/ EC, Regulation 282/2011, Council Directive 98/80/ EC and Implementing Regulation 282.

In general, during November 4-6, 2020, the German expert together with Ukrainian colleagues and advisers discussed the following issues:

• features of taxation of investment gold transactions;

• German legislation on the taxation of investment gold transactions, taking into account the principles and requirements of EU law;

• the difficulties that may arise during the implementation of the provisions of Directive 112 into national legislation on investment gold;

• recommendations for Ukraine on the adaptation of national legislation to EU legislation on investment gold;

• procedures and methods for monitoring the legality of the application of EU legislation on investment gold;

• the system of control in Germany over investment gold transactions;

• risks associated with the implementation of the provisions of Directive 112 into national legislation on investment gold.

All of this allowed the representatives of the Ministry of Finance, the State Tax Service and the NBU to gain additional experience in implementing EU Directives and Regulations into national legislation in the field of taxation of investment gold transactions and to discuss their own issues. In addition, they will be able to use the acquired knowledge in their further work on the implementation of certain provisions into national legislation and solve a number of problems.