KYIV. Jan 11 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved the updated procedure for electronic administration of value added tax (VAT).
According to cabinet resolution No. 1177 of December 30, 2015 the updated procedure was approved to meet the amendments to the Tax Code that took effect from January 1, 2016.
The government said that the electronic VAT administration procedure was updated to realize the mechanism for partial payment of VAT by agricultural companies that use the special taxation regime depending on the type of agricultural products they make.
The procedure settles the inclusion of the specific conditions for taxpayers who use cash taxation method into the electronic VAT administration system.
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.
