Will the VAT payer’s registration be canceled for a period of the special tax regime (single tax of Group III at 2% rate)?

Information and Reference Department, published 29 April 2022 at 11:38 Chapter: News

Interest rate for taxpayers of Group III who use taxation peculiarities, defined in Paragraph 9 of Sub-section 8 Section XX "Transitional Provisions" of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU), is set at 2% income rate.

Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU stipulates that single tax payers of Group III who use the taxation peculiarities established by Paragraph 9 of Sub-section 8 Section XX "Transitional Provisions" TCU, are exempted from an obligation to charge and pay the VAT for supply of goods, works and services, given that supply place is located in the customs territory of Ukraine and for import of goods to the customs territory of Ukraine, as well as the VAT tax reporting; their registration as the VAT payer is suspended.

Suspension of the VAT payer’s registration for purposes of Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU means that for single tax payers of Group III, who use taxation peculiarities established by Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, the rights and obligations established by Section V and Sub-section Section XX of the TCU (including formation of tax credit) are suspended for a period of use of taxation peculiarities established by Sub-paragraph 9.5 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.

More information is in the “Knowledge Base” of public information and reference resource