MPs from Batkivschyna propose resuming special taxation regime in agriculture

11:57, 11.01.2016 1 min read

MPs Oleksandra Kuzhel, Ivan Kyrylenko and Vadym Ivchenko the Batkivschyna faction) have proposed that the special value added tax regime for farmers is returned.

Bill No. 3748-1 on amending the Tax Code of Ukraine regarding some taxation issues in agriculture was registered in parliament on January 5, 2016.

The authors of the document proposed that single tax rates for the fourth group of taxpayers (agricultural producers) effective in 2015 are set in 2016.

As reported, the Ukrainian parliament has approved a compromise on revoking the beneficial VAT taxation regime for farmers via granting the beneficial regime for the period until they transfer to the general taxation system.

In 2016 for the period when milk and meat producers transfer to the general taxation system 80% of VAT will be left for them and 20% will be sent to the budget.

Farmers working with grain and industrial crops will send 85% of VAT to the budget, and other farmers – 50%.

Since 2017, the VAT beneficial regime for farmers will be revoked.