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Ukraine Introduces 14% VAT Rate for Certain Agricultural Products — Orbitax Tax News & Alerts

With effect from 1 March 2021, Ukraine has introduced a reduced VAT rate of 14% for certain agricultural products. According to a release issued by the Ukraine State Tax Service (STS), the 14% rate applies for the supply in Ukraine and import into Ukraine of the following commodity items in accordance with the Ukrainian classification of FEA goods:

  • Animal products, including 0102 (cattle, live), 0103 (pigs, live), 0104 10 (sheep), 0401 (in part of whole milk); and
  • Plant products, including 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), and 1212 91 (sugar beets).

In connection with the introduction of the 14% VAT rate, the STS has also announced that new forms of VAT reporting and tax invoice have been approved, which contain rows and columns created to reflect information on taxpayers’ operations for the supply of agricultural products subject to the 14% rate.