Moloko Vitchyzny LLC congratulates the agricultural sector on the adoption by the Verkhovna Rada of Ukraine of the draft law №3656 on reducing the VAT rate on certain types of agricultural products.
On September 17, at the session of the Verkhovna Rada of Ukraine, a bill on amendments to the Tax Code of Ukraine on the rate of value added tax on transactions for the supply of certain types of agricultural products was adopted in the first reading.
This was reported on the website of the Ministry of Economic Development.
In particular, the VAT rate for the agricultural sector has been reduced from 20% to 14% for transactions on supply in the customs territory of Ukraine and import into the customs territory of Ukraine of agricultural products:
- whole milk;
- cattle, live pigs;
- wheat, rye, barley, oats, corn, soybeans;
- flax, cole and rapeseed, sunflower and other oilseeds;
- sugar beets.
The team of company Moloko Vitchyzny hopes that this bill will help:
- reducing the tax burden on producers of agricultural products, which will reduce the cost of raw materials for processors of such products;
- increasing the competitiveness of Ukrainian agricultural products;
- saving working capital for farmers, which will allow them to invest in farm development;
- de-shadowing of the agricultural sector – lowering the VAT rate will reduce the effectiveness of fraudulent schemes – the so-called “twists”, through which a significant part of grain is exported, and fraudsters illegally receive VAT refunds from the state budget.
Deputies also voted for a shortened procedure for preparing this bill of Ukraine for the second reading.