VAT rate is reduced to 14% for specific types of agricultural products
18/12/20
On 17 December 2020 the Parliament of Ukraine adopted the draft Law1 reducing the VAT rate (from 20% to 14%) for the import and supply in Ukraine of agricultural products classified under the following UKTZED codes:
Products of animal origin 0102 (cattle, live) 0103 (pigs, live) 0104 10 (sheep) 0401 (in part of whole milk) |
Products of plant origin 1001 (wheat) 1002 (rye) 1003 (barley) 1004 (oats) 1005 (corn) 1201 (soybeans) 1204 00 (flax seeds) 1205 (seeds of rape) 1206 00 (sunflower seeds) 1207 (seeds and fruits of other oilseeds) 1212 91 (sugar beets) |
Imports of pedigree purebred animals and breeding (genetic) resources under the above codes remain exempt from VAT under Article 197.18 of the Tax Code.
Transactions that started before the application of the reduced VAT rate are completed at the VAT rate of 20%.
The bill has yet to be signed by the Chairman of the Verkhovna Rada of Ukraine and the President of Ukraine. The amendments shall enter into force on the day following the day of publication of the Law and shall apply to tax periods starting from the first day of the month following the month of publication of the Law.
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1Draft Law of Ukraine "On amendments to the Tax Code of Ukraine related to VAT rate for supply of specific agricultural products" № 3656 (further - "Draft Law")
