Which business entities are exempted from the VAT payment importing goods to the customs territory of Ukraine under customs import regime during martial law on the territory of Ukraine?

Sub-paragraph 69.23 Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the Tax Code of Ukraine as of 02.122010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that temporarily, from April 1, 2022 for a period of martial law on the territory of Ukraine, there is exemption from the VAT payment for import of goods to the customs territory of Ukraine under customs import regime for business entities registered as the single tax payers of Groups I – III and legal entities that chose the single tax rate determined in Sub-paragraph 1 Paragraph 293.3 Article 293 of the TCU.

Specifically, Sub-paragraph 1 Paragraph 293.3 Article 293 of the TCU stipulates that the single tax interest rate for taxpayers of Group III is set at 3% of income in case of the VAT payment according to the TCU.

In addition, Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX of the TCU stipulates that single tax payers of Group III who use taxation peculiarities, determined in Paragraph 9 of Sub-section Section XX "Transitional Provisions" of the TCU, are exempted from an obligation to charge and pay the VAT, in particular importing goods to the customs territory of Ukraine.

Exemption from taxation, determined in Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU and Sub-paragraph 69.23 Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the TCU, is not applicable to import to the customs territory of Ukraine under customs import regime of goods originating in the country recognized as the occupying state in terms of the law and / or recognized as an aggressor state in relation to Ukraine according to the law or imported from territory of the occupying state (aggressor) and / or from the occupied territory of Ukraine, defined as such according to the law.

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