Rada cuts VAT rate on agricultural raw materials from 20% to 14%

The Verkhovna Rada has lowered the VAT rate for some types of agricultural products from 20% to 14%, having supported bill No. 3656 at second reading.

An Interfax-Ukraine correspondent has reported that 255 MPS backed the bill with the required 226 votes.

According to the bill, it is proposed to establish a preferential tax rate of 14% for operations for deliveries in the customs territory of Ukraine and for the import of agricultural products into Ukraine for whole milk, cattle, live pigs, wheat, rye, barley, oats, corn, soybeans, flax and rapeseed, sunflower and other oilseeds, as well as sugar beets.

"This list contains only those goods that are not sold at retail, that is, those that cannot be taxed applying VAT. VAT for goods such as grain or crude oil is a deposit that is later refunded or turns into other goods at a rate of 20% VAT," MP Marian Zablotsky said, presenting the document in parliament.

As reported, on September 17, the Verkhovna Rada adopted at the first reading bill No. 3656 on amendments to the Tax Code of Ukraine regarding the rate of value added tax on operations for the supply of certain types of agricultural products, which is proposed to reduce the VAT rate from 20% to 14% for certain types of products (raw materials) in agriculture.

Source: www.en.interfax.com.ua