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Ministry of Agrarian Policy initiates prolonging of agrarians VAT taxation special regime until 2009
25.10.2007 12:13 "Agro Perspectiva" (Kyiv) —
Ministry of Agrarian Policy has elaborated draft Law “About Bringing Changes to Some Laws of Ukraine in Part of Taxation of Agricultural Goods Producers with Value-Added Tax” stipulating prolonging of country agricultural goods producers VAT taxation special regime until 2009, reported news agency Ukrainian News. As to draft Law, currently efficient agricultural goods producers VAT taxation special regimes should be prolonged until Jan 1, 2009; besides, VAT zero rate should be spread upon operations with similar imported products. Draft Law stipulates agriculture, forestry and fish farming spheres activities VAT taxation special regimes cancellation as inconsistent with Ukraine WTO joining conditions. It is to be admitted, 2006 State indirect support (provided through abovementioned VAT taxation introduction) of agricultural goods producers totaled UAH4.1 milliard. Thus, draft Law will make it possible to retain necessary indirect State support of agricultural goods producers under condition of lack of sufficient State budget costs to assure direct support and, besides, to evade inadequate VAT taxation of operations performed by agricultural goods producers and those executed by agricultural goods importers. Currently efficient Ukrainian VAT costs accumulation doesn’t contradict to Ukraine WTO joining conditions due to domestic agricultural goods (as well as similar imported goods) VAT rate is 20% and therefore no importers discrimination in VAT costs accumulation is to be expected. Reportedly, Verkhovna Rada prolonged agricultural producers preferential taxation regime until 2008. As to Rada Law, all categories agricultural producers live weight meat and milk shipments (directed to processors) VAT zero rate should be prolonged until 2008, while introduction of special taxation regime of agriculture, forestry and fish farming spheres activities taxation should be postponed until 2008 beginning.
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