The Ukraine State Tax Service (STS) has announced that the applicable VAT rate for certain agricultural products that was reduced to 14% earlier in the year has reverted to 20% with effect from 1 August 2021. The reduced rate was previously provided with effect from 1 March 2021. The standard 20% rate applies from 1 August 2021 for supplies in Ukraine and imports 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, live), 0401 (in part of whole milk); and
- Plant products, including, 1002 (rye), 1004 (oats), 1204 00 (flax seeds), 1207 (seeds and fruits of other oilseeds), and 1212 91 (sugar beets).
However, the reduced 14% rate continues to apply for several other plant products, including 1001 (wheat and mixture of wheat and rye), 1003 (barley), 1005 (corn/maize), 1201 (soybeans), 1205 (seeds of rape), and 1206 00 (sunflower seeds).
The changes were provided for by Law No. 1600-IX of 1 July 2021. The STS has also published transitional rules on applying the rate changes under the law.
Source Orbitax
