It is likely that the bill will be adopted in one reading – as a basis and as a whole.
The Tax Committee of the Verkhovna Rada of Ukraine will recommend the deputies to approve the bill №719 – the promised “customs reform”, which should become unprecedented in this area. The People's Deputy of Ukraine Yaroslav Zheleznyak reported about it.
“Our Tax Committee of the Verkhovna Rada has just approved the previously announced” customs reform “№719,” the deputy wrote.
Among other things, the bill provides for the exemption of imports from duties and VAT, as well as the suspension of registration as a VAT payer for new “simplifications” instead of cancellation.
Major changes for importers
- Import of imported goods is exempt from duties. The norm does not apply to products from the Russian Federation, Belarus and the temporarily occupied territories.
- From April 1, 2022 until the end of martial law, operations on the import of goods by “simplified” 1-3 groups are exempt from VAT.
- For the list of goods determined by the Cabinet of Ministers, the obligation to submit permits required for import (sanitary, environmental and others) is abolished.
The main changes for VAT payers in the transition to a simplified system of taxation for the period of martial law:
- Registration as a VAT payer is suspended (NOT canceled).
- It is prohibited to trade in goods from the Russian Federation, Belarus and the temporarily occupied territories.
- The date of transition to the simplified system is the date specified in the application.
- All goods purchased under VAT before the transition to the simplified system and used during the stay on the simplified system, after the end of martial law will need to be charged VAT.
Major changes for property owners:
- For 2021 and 2022, no tax is paid on residential real estate located in combat areas.
- From March 1, 2022 to December 31 of the year in which martial law will be abolished, no tax is paid on non-residential real estate located in combat areas.
Other innovations of the bill:
- Local governments are given the right to introduce local taxes (provided by the NKU) and make changes to previously established (reduce / increase rates) without extending the requirements of regulatory legislation.
- The suspension of the statute of limitations does not apply to the case if martial law or a state of emergency is not imposed on the entire territory of Ukraine.
- Income from the sale of own agricultural products will be taxed by the tax agent, not the individual himself.
- It is assumed that for exporters of fuel is also not subject to budgetary reimbursement of the amount of negative value for VAT, determined for the relevant reporting period, which includes the amount of tax liability for transactions with a VAT rate for fuel 7%. Such amounts will be included in the tax credit of the next period.
- The period of exemption from environmental tax is set from March 1, 2022 to December 31, in which martial law will be abolished (instead of full 2022). And such exemption will be applied to the subjects registered in the territories where hostilities were conducted, instead of to the objects which are in these territories.
- For the period of martial law and / or state of emergency, it is allowed to retail only through pharmacies ethyl alcohol, which is used as a drug up to 100 cubic cm.
- Passage through the customs border of Ukraine of goods, which by their characteristics and physicochemical properties may belong to cultural values, narcotic drugs, psychotropic substances and precursors, radio electronic means prohibited for import, military or dual-use goods, hazardous waste, etc. . will be carried out on the basis of the declarant's statement on non-application of prohibitions and restrictions to such goods. Such goods are subject to post-customs control provisions.
- A moratorium is introduced on documentary checks of compliance with the requirements of the legislation on customs.
- A number of terms stipulated by the Customs Code are suspended
- It is assumed that customs formalities may be performed by other customs authorities than those provided for in the Customs Code.
- For the period of martial law, the registration of objects of intellectual property rights in the customs register of objects of intellectual property rights shall be suspended.
- The Customs Code of Ukraine may establish a list of goods whose international transfers are not covered by the Law “On State Control over International Transfers of Military and Dual-Use Goods”.
- Subject to certain conditions, the production and subsequent export of denatured ethyl alcohol outside the customs territory of Ukraine is permitted.
Zheleznyak expressed confidence that the bill would be adopted in one reading – as a basis and as a whole.
