SEAU calls on the Cabinet of Ministers and the Verkhovna Rada to review unfair tax practices

The Solar Energy Association of Ukraine and the European-Ukrainian Energy Agency (EUEA) have sent inquiries to official bodies to clarify problematic issues of tax legislation.

According to the SEAU on its Facebook page, the relevant letters were sent to the State Tax Service of Ukraine, the Verkhovna Rada of Ukraine, the Ministry of Finance of Ukraine and the Prime Minister of Ukraine.

The requests refer to the difficulties faced by solar power plant operators due to non-transparent and unfair tax practices. It also emphasizes the need to review approaches to asset classification and depreciation, which jeopardize the stability of solar power plants.

“During inspections, the fiscal authorities have questions about the construction and depreciation of solar power plants built many years ago. Thus, the inspectors believe that the constructed solar power plant should be classified as one item of fixed assets with a depreciation period of at least 15 years. At the same time, the tax authorities do not take into account the right of the company to classify the components of the power plant with different useful lives as separate objects with shorter useful lives,” the SEAU cites an example.

Market participants ask for an objective review of objections to the audit reports and a meeting with officials of the Ministry of Finance and the State Tax Service for an open dialogue on the correct application of accounting rules. They also emphasize that their efforts are aimed at protecting renewable energy companies from unfair pressure and ensuring the stable development of the industry.