Regarding the possibility of applying the VAT exemption regime for supply operations, including import, waste and scrap of ferrous and non-ferrous metals, which were carried out during January – March 2022

Press service of the State Tax Service of Ukraine, published 19 October 2022 at 12:12 Chapter: News

Taxpayers carried out supply operations, including import, waste and scrap of ferrous and non-ferrous metals during January – March 2022.

In this regard, the taxpayers have questions regarding the practical application of tax legislation to the above specified operations, in particular, use of lists of waste and scrap of ferrous and non-ferrous metals for applying the VAT exemption regime.

Law of Ukraine № 1914-IX as of 30.11.2021 "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on ensuring balance of budget revenues", which entered into force on 01.01.2022, extended until 01.01.2027 the effect of temporary the VAT exemption regime, determined in Paragraph 23 of Sub-section 2 Section XX of the Tax Code of Ukraine (hereinafter – TCU), for supply operations, including import of waste and scrap of ferrous and non-ferrous metals, as well as paper and cardboard for disposal (waste and wastepaper) of commodity heading 4707 according to the Ukrainian classification of the FEA products.

Lists of such waste and scrap of ferrous and non-ferrous metals are approved by the Cabinet of Ministers of Ukraine.

Therefore, until 01.01.2022, lists of waste and scrap of ferrous and non-ferrous metals, supply operations of which, in particular import, are temporarily exempted from the value added tax (hereinafter – Lists), which is approved by Resolution of the Cabinet of Ministers of Ukraine № 15 as of 12.01.2011 (hereinafter – Resolution № 15).

Further, validity of the Lists was extended until 01.01.2027 by making amendments to Resolution № 15 by Resolution № 337 of the Cabinet of Ministers of Ukraine as of 21.03.2022 (hereinafter - Resolution № 337).

In particular, Resolution № 337 entered into force on the day of its publication (Uryadovyy kuryer newspaper № 65 as of 22.03.2022), namely 22.03.2022.

In view of the above specified, temporary the VAT exemption regime, determined in Paragraph 23 of Sub-section 2 Section XX of the TCU, is applicable to supply operations, including import of waste and scrap of ferrous and non-ferrous metals, carried out, in particular, from 01.01.2022 until 01.01.2027 (including such operations carried out during January – March 2022).

In addition, rules defined in Article 199 Section V of the TCU are applicable to such operations starting from 01.01.2022.