According to the presidential decree “On measures to further deepen reforms and expand export potential of the textile and garment-knitting industry”, textile companies will be provided with state support.
From April 1 onwards, a new order is established: when part of the costs associated with payment of interest on loans allocated to garment and knitting enterprises in 2019-2021 are covered by the State Fund for supporting development of business activities. This applies only to those companies that export at least 80% of their products.
From the same date, refund to the taxpayer of the VAT amount arising from the application of zero rate, is carried out in an expedited manner within seven working days.
In addition, requirement to provide information will be cancelled that is available to the state tax service, including the act of reconciliation of taxes and other obligatory payments and calculations of value added tax.
It also annuls exclusive requirement of a bank guarantee for the sale of cotton fiber through exchange trading. In this case, the method of ensuring the fulfillment of obligations is determined between the parties on a contractual basis.
Furthermore, starting from the harvest of 2019, while selling cotton fiber to the republican organizations, VAT is calculated on the basis of the actual selling price regardless of prices in the world market.