Zelensky signs law to reduce VAT rate for certain agricultural products
President of Ukraine Volodymyr Zelensky signed a law on amendments to the Tax Code of Ukraine regarding the rate of value added tax (VAT) on transactions for supply of certain agricultural products.
According to the press service of the head of state, the law provides for a reduction in the VAT rate from 20% to 14% on transactions for the supply and import of certain types of agricultural products into Ukraine, in particular: cattle, pigs, whole milk, wheat and rye, barley, oats, corn, soybeans, sugar beets, flax seeds, rapeseed, sunflower and other oilseeds.
"The law is aimed at providing support for agricultural production in Ukraine, attracting investments in the industry and increasing the competitiveness of domestic agriculture," the message said.
It is noted that the implementation of the law will also reduce the motivation of taxpayers to optimize tax liabilities for VAT on transactions with relevant products, reduce budget losses and contribute to shading in the field of agricultural production.
As reported, on September 17, the Verkhovna Rada adopted at the first reading bill No. 3656 on amendments to the Tax Code of Ukraine regarding the rate of value added tax on transactions for the supply of certain types of agricultural products, which is proposed to reduce the VAT rate from 20% to 14% for certain types of products (raw materials) in agriculture.