News

VAT reduction for agricultural products to 14%

The Law “On Amendments to the Tax Code of Ukraine Concerning the VAT Rate on Transactions for the Supply of Certain Types of Agricultural Products” has been already signed by President.

In order to support agricultural production in Ukraine, the Law introduces a reduction in the VAT rate from 20% to 14% on supply and import transactions of certain types of agricultural products into Ukraine. There are cattle, pigs, wheat, rye, barley, oat, corn, soybeans, flax seeds, canola seeds, sunflower seeds, seeds and fruits of other oilseeds, sugar beets.

The previous tax rate applies for the following :

• supply of products after the transfer of prepayment by the taxpayer, which takes place before the date from which the rate of 14 % is applied;
• adjustment of tax liabilities in case of refund of advance payment or refund of products before the date from which the rate of 14 % is applied;
• adjustment of tax liabilities in case of changes in the contractual value of products, the delivery of which took place before the date from which the rate of 14 % applies.