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EAEU forms mechanism for fiscal monitoring in mutual trade

EAEU forms mechanism for fiscal monitoring in mutual trade

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3/17/2021

Improving tax legislation, exchange of information between tax authorities as well as tax barriers in the Eurasian Economic Union were discussed at a meeting of the Advisory Committee on Tax Policy and Administration at the Eurasian Economic Commission.

The meeting was chaired by Arman Khachatryan, Director of the EEC Financial Policy Department, at the EEC’s headquarters. It was attended by the heads and experts of authorized state authorities in charge of the Eurasian Economic Union’s tax policy issues.

The ways to implement the objectives of the Strategic Directions for Developing the Eurasian Economic Integration until 2025 were discussed.

The Union countries’ measures and plans to implement the Agreement on the mechanism of traceability of goods imported into the customs territory of the Eurasian Economic Union, technological aspects, principles and approaches to creating and operating the national traceability system were considered. The issue of determining the procedure for collecting indirect taxes when rendering e-services was addressed as well.

The Advisory Committee members paid special attention to forming a mechanism for fiscal monitoring of the trade turnover in the EAEU mutual trade being developed with due regard to the use of new IT solutions. It is digital transformation of tax administration that is the key to measures being taken by the countries to improve efficiency of control over goods movement in the EAEU mutual trade as well as to simplify procedures for confirming the zero VAT rate for exports.

Besides, the sides have approved the basic model of the fiscal monitoring system, the draft Procedure for electronic interaction between the EAEU Member States’ tax authorities for the exchange of information, and details of significant fiscal information.

Along with that, the EEC Financial Policy Department plans to draft an Instruction of the Commission’s Council on conducting a pilot project "Fiscal monitoring of the trade turnover in the EAEU mutual trade".

Furthermore, provision is made for sharing experience on operating national electronic document flow systems (considering possible use of the EAEU integrated digital platform) due to accelerating digital transformation of the public and private sectors.

The annual review of tax law changes affecting mutual trade considered at the meeting is planned to be posted on the EEC website after further consideration and clarification by the EAEU countries.

For reference

The Advisory Committee on Tax Policy and Administration established by Decision No. 13 of the Eurasian Economic Commission’s Board dated March 15, 2012 is the Commission’s advisory body on tax policy, improving the mechanism for collecting taxes in mutual trade in accordance with Section XVII of the Treaty on the Eurasian Economic Union dated May 29, 2014.