Application of the VAT benefits for humanitarian aid purchased and provided in the customs territory of Ukraine by diplomatic missions

Resolution as of 20.10.2021 № 1084 “On amendments to procedure for exemption from the value added tax for supply and import to the customs territory of Ukraine of products and services provided for own needs of diplomatic missions, consulates of foreign states and representations of international organizations in Ukraine, as well as for use by persons from among the diplomatic staff of diplomatic missions and members of their families living with them” entered into force on 28.10.2021.  

Resolution amends Procedure № 1240, particularly the mechanism of application of the value added tax benefits established by the international treaties of Ukraine, which are binding in manner prescribed by law on humanitarian aid purchased and provided in the customs territory of Ukraine by diplomatic missions, consular offices of foreign states and representations of international organizations in Ukraine.

What has changed according to Resolution?

Mechanism of application of the value added tax benefits on humanitarian aid, which is purchased and provided in the customs territory of Ukraine by diplomatic missions, consulates of foreign states and missions of international organizations in Ukraine, has been determined.

Procedure for exemption from the value added tax for representative offices of international organizations according to the international agreements of Ukraine on operations related to construction / repair / reconstruction of buildings, purchase or lease of premises has been determined.

Application form for the value added tax reimbursement to diplomatic missions, persons from among diplomatic staff and members of their families has been outlined in the new wording.

Submission of a separate Register of documents for the VAT reimbursement for products / services recognized as humanitarian aid (Annex 2 to the Application) has been established.

List of documents that are a basis for the monthly payment the VAT reimbursement, including for products / services recognized as humanitarian aid has been extended.

Procedure for exchanging information between the Ministry of Social Policy and the State Tax Service regarding notifications on products / services recognized as humanitarian aid provided by donors – diplomatic missions, consular posts of foreign states and missions of international organizations in Ukraine has been determined.

Actions of diplomatic missions, consulates of foreign states and missions of international organizations in Ukraine in case of humanitarian assistance:

-it is necessary to apply to the Ministry of Social Policy to initiate procedure of recognition of products / services as humanitarian aid according to the Law of Ukraine “On humanitarian aid”;

- to receive the value added tax reimbursement in case of humanitarian aid, it is necessary to submit the following to the STS’s territorial body at the registration place of institution:

application and Annex 2 to the Application “REGISTER of submitted documents for amount specified in the application for value added tax reimbursement paid by donors – diplomatic missions, consulates of foreign states and missions of international organizations in Ukraine for products / services recognized as humanitarian aid” with mandatory submission of certified by the authorized person of diplomatic mission copies of documents submitted / received to / from the Ministry of Social Policy (written donor’s suggestion to provide humanitarian aid, documents indicating exhaustive list of products / services submitted for recognition as humanitarian aid, decision on the recognition as humanitarian aid, etc.).

Important: basis for the VAT reimbursement to diplomatic missions, consulates of foreign states and representations of international organizations in Ukraine are original documents (receipts for products, tax, expense invoices, payment orders, documents certifying provision of services, etc.) and copies of documents submitted / received to / from the Ministry of Social Policy certified by the authorized person of diplomatic mission (donor’s written suggestion for humanitarian aid, documents indicating exhaustive list of products / services submitted for recognition as humanitarian aid, decision on recognition of humanitarian aid, etc.) provided to the STS’s territorial body at the registration place of institution in due time.

Please note that application for the value added tax reimbursement to diplomatic missions, persons from among diplomatic staff and members of their families is submitted in a new form starting from 28.10.2021.

To the attention of diplomatic missions, consulates of foreign states, missions of international organizations in Ukraine, there is posted by the Ministry of Social Policy information on the recognition of products (goods) / services as humanitarian aid on the official website of the Ministry of Social Policy at link: https://www.msp.gov.ua/news/20969.html 

Reminder! Cabinet of Ministers of Ukraine adopted Resolution № 1084 “On amendments to procedure for exemption from the value added tax for supply and import to the customs territory of Ukraine of products and services provided for own needs of diplomatic missions, consulates of foreign states and representations of international organizations in Ukraine, as well as for use by persons from among the diplomatic staff of diplomatic missions and members of their families living with them” on 20.10.2021.

Resolution entered into force on 28.10.2021 (in connection with its publication on this day in the “Uryadovyi kuriyer” № 207).