Application of 20% VAT rate on certain types of agricultural products was resumed on August 1

Application of 20% VAT rate was resumed for supply operations in the customs territory of Ukraine and import of certain types of agricultural products to the customs territory of Ukraine from August 1, 2021. These are products that are classified according to the following codes according to Ukrainian classification of the FEA products: 0102 (alive cattle); 0103 (alive pigs), 0104 10 (alive sheep), 0401 (whole milk), 1002 (rye), 1004 (oats), 1204 00 (flax seeds, whether or not ground), 1207 (seeds and oleaginous fruits) crops, whether or not ground), 1212 91 (sugar beet).

Such changes are provided by the Law of Ukraine as of 01.07.2021 № 1600-IX “On amendments to the Tax Code of Ukraine on value added taxation rate for supply operations of certain types of agricultural products”, which entered into force on August 1, 2021.

At the same time, the Law kept 14% rate, effective from March 1, 2021 for supply operations to the customs territory of Ukraine of the following agricultural products: 1001 (wheat, wheat mix and rye mixtures), 1003 (barley), 1005 (corn), 1201 (soybeans, whether or not ground), 1205 (seeds of rape, whether or not ground), 1206 00 (sunflower seeds, crushed or uncrushed).

Some features of the VAT taxation in connection with restoration of 20% VAT rate on certain types of agricultural products can be found here.

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