Oleksiy Lyubchenko: Special VAT rate for some types of agricultural products is a result of increasing the overall efficiency of its administration system

Press service of the State Tax Service of Ukraine, published 26 October 2020 at 16:36 Chapter: News

Introduction of special reduced VAT rate for some types of agricultural products will allow legal business entities to save working capital on the purchase and interim payment of tax to the budget. This was stated by Chairman of the State Tax Service of Ukraine Oleksiy Lyubchenko in an interview with “Interfax-Ukraine”. According to him, this is not a problem as it is an intermediate consumption.

“An inventory is required at the time of transition to the special rate. Grain residues must be recorded. Otherwise, the game will start with a 6% difference. This wording is in the wording of the draft law before the first reading. If it is kept in the second reading, then everything is fine. I generally offered a 10% rate” – clarified Oleksiy Lyubchenko.

According to him, the price will reboot a bit but there will be more money in the budget. This will not make any sense in a paper loan.

At the same time, given the intentions of some legislators to reduce the VAT rate for some final consumption products, Oleksiy Lyubchenko believes that it should be the only one.

“The 112th Directive (the EU Council on the Common VAT System) cannot be exceeded. It allows only two reduced rates in the country. At present, our limit has been exhausted: one reduced rate applies to medicines, the other – zero for electric vehicles (valid until 2022). Without this restriction, everyone would start betting” – assured Chairman of the STS.