President of Ukraine Volodymyr Zelensky has signed a law restoring the value added tax (VAT) rate for part of agricultural products from 14% to 20%, the specified tax rate reduction was in effect from March 1, 2021 to July 30, 2021.
According to data on the website of the Verkhovna Rada, the law on amendments to the Tax Code of Ukraine regarding the rate of value added tax in taxation of transactions for the supply of certain types of agricultural products under No. 1600-IX (bill No. 5425-d) was signed on July 29.
According to the data on the website of the President’s Office, the law is intended to reduce the risks from higher food prices, as well as to create equal conditions for VAT taxation for agricultural producers and processing industry enterprises. The document comes into force on July 30 and applies to tax periods starting from August 2021.
As reported, on July 1, 2021, the parliament returned the VAT rate on livestock products, rye, oats, flax seeds and sugar beets to 20% from the previously reduced one 14%.
The 20% rate will again apply to products with economic activity codes 0102 (live cattle), 0103 (live pigs), 0104 10 (live sheep), 0401 (in terms of whole milk), 1002 (rye), 1004 (oats), 1204 00 (flax seeds), 1207 (seeds and fruits of other oilseeds), 1212 91 (sugar beets).
At the same time, with respect to other grains and oilseeds, the VAT rate is 14%. In particular, the matter concerns goods with codes 1001 (wheat and meslin), 1003 (barley), 1005 (corn), 1201 (soybeans), 1205 (rape seeds) and 1206 00 (sunflower seeds).
Earlier, a number of associations and food industry enterprises asked the president to veto bill No. 3656, adopted by the Verkhovna Rada in December 2020 and reducing the VAT rate on some agricultural raw materials to 14%, since its action entails an increase in the cost of food products by 3-4% and a decrease in the profitability of processing enterprises by 50-70%.
The adoption by the Verkhovna Rada of the law, which provides for the reboot of the High Council of Justice (HCJ), will launch a real judicial reform in Ukraine, according to a statement posted on the website of the President’s Office on Wednesday.
According to the statement, relevant bill No. 5068, which was initiated by President of Ukraine Volodymyr Zelensky, provides for steps to ensure the independence of the judicial branch of government, namely the reboot of the HCJ, which is responsible for the selection and dismissal of judges. In the implementation of the judicial reform in Ukraine, the recommendations of Venice Commission’s experts, who provided their opinion on the draft law, were taken into account.
“This is without exaggeration a historic event for Ukraine. During the entire period of independence of our state, no government has carried out a real judicial reform giving nothing but promises. My goal is to restore trust and respect for the court. The servants of Themis will cease to be servants of the President, government, parliament or local authorities,” the President said.
Zelensky said that justice is one of the basic values of Ukrainians, but it cannot be ensured without an independent judiciary. In addition, domestic and foreign investors need a fair trial. The vote for the reform of the High Council of Justice laid the necessary foundation for effective changes in the judiciary.
President of Ukraine Volodymyr Zelensky signed the law On Amendments to the Tax Code of Ukraine regarding the abolition of taxation of income received by non-residents in the form of payments for the production and/or distribution of advertising, and improvement of the taxation procedure for value added tax transactions for the supply of electronic services by non-residents to individuals No. 1525-IX, which the Verkhovna Rada adopted on June 3. The website of the head of state reports that the document defines a special taxation procedure for value added tax of non-resident companies that provide electronic services to persons residing in Ukraine.
“This will allow increasing state budget revenues from VAT. Such taxation rules are already becoming a common practice in foreign countries, for example, in the countries of the European Union, Australia, Belarus, Kazakhstan, and the like,” it said.
It is reported that foreign companies that supply electronic services to Ukrainians will be required to register as value-added tax payers using a simplified procedure through a special electronic service if the total amount from the implementation of the relevant transactions exceeds UAH 1 million per year. Non-residents will fill out simplified statements in electronic form in the state or English language.
At the same time, according to the document, transactions for the supply of distance learning services via the Internet are exempted from VAT if this network is used exclusively as a means of communication between a teacher and a student. Also, transactions on the supply of educational services by access to public educational, scientific and information resources on the Internet from the branches of knowledge and specialties in which the training of applicants for higher education is carried out are exempted from value added tax, if their implementation and provision does not require human participation.
From January 1, 2022, Ukrainian companies which pay for services for the production or distribution of advertising abroad, will be exempted from VAT.
President of Ukraine Volodymyr Zelensky at the Ukraine 30. Ecology forum signed a bill on limiting the circulation of plastic bags on the territory of Ukraine, which the Verkhovna Rada adopted on June 1, into law.
“Five hundred. This is how many packages every Ukrainian uses a year. Twenty minutes. This is how much we use this package on average. More than 100 years. This is how long one package decomposes and a few seconds – to sign a law,” the president said, according to the press service of the head of state.
The document regulates the circulation of plastic bags and should stimulate the development of the production of biodegradable bags.
In particular, the law prohibits the free distribution of plastic bags (except for biodegradable) in retail and catering. Plastic bags should be provided for money only. At the same time, retail prices for such packages cannot be lower than the minimum prices set by the Cabinet of Ministers of Ukraine.
In addition, mandatory labeling of biodegradable bags is envisaged and fines are set for violating these norms.
The document comes into force on the next day after its publication and will be effective six months from the date of entry into force, with the exception of some of its provisions.
Business awaits law enforcement reforms, but the latest version of the law on the Economic Security Bureau and the bill on the reform of the Security Service (SBU) adopted at first reading raise doubts about the quality of such reforms, the European Business Association (EBA) said in a release.
“It is worth noting that currently, the problem of cooperation with law enforcement agencies concerns not only SMEs and regional entrepreneurs but also large international companies and strategic investors,” the release says.
“The reform issue is especially relevant now in the context of the establishment of the Bureau of Economic Security. Although the community has not yet seen the final version of the document, the business was wary of the penultimate version of the draft law. Thus, there are fears that instead of a radically new analytical body that would help protect the interests of business, a new structure may be created with a new name, but with the same methods of work and even the same people,” the EBA says.
“At the same time, the SBU reform was launched, so to speak, by the adoption of the draft law No. 3196-d at first reading. Thus, the draft law was supposed to eliminate anti-corruption and economic units in the SBU, partially demilitarize the service, etc. However, there are fears that the liquidated SBU departments will be reincarnated as other functional units that will provide counterintelligence support in the economic context. In other words, it is likely to put continued pressure on the business. And, in general, this document invokes a lot of questions concerning the renewed functions and powers of the service,” it noted.
“Therefore, the European Business Association appeals to Volodymyr Zelensky, President of Ukraine, Denys Shmyhal, Prime Minister of Ukraine, and Arsen Avakov, Minister of Internal Affairs, to pay due attention to reforming the law enforcement system in 2021. It is unacceptable and unreasonable to persecute the business. Otherwise, the issue of attracting investment, business development, and economic development, in general, may become a big question. We hope that the time for fundamental reforms has come and we will finally move from talks to the action!” the document says.
President of Ukraine Volodymyr Zelensky commends the adoption of the law “On democracy through the nationwide referendum” (draft law No. 3612) by the Verkhovna Rada, the presidential press service reported.
“Now Ukrainians will be involved in practice in making important decisions for the country, and the government will be forced to listen to the will of the people. The referendum is an important tool for expanding democracy in Ukraine,” the President stressed.
Zelensky noted that the adoption of the relevant law was one of the important points of his election campaign during the presidential elections, as the document makes the dialogue between the government and society clearer.
It has been determined that the following issues cannot be the subject of the nationwide referendum:
– those contrary to the provisions of the Constitution of Ukraine, generally recognized principles and norms of international law, enshrined primarily in the Universal Declaration of Human Rights, the Convention for the Protection of Human Rights and Fundamental Freedoms, protocols thereto;
– those abolishing or restricting the constitutional rights and freedoms of man and citizen and guarantees of their realization;
– those aimed at eliminating the independence of Ukraine, violating the state sovereignty, territorial integrity of Ukraine, creating a threat to the national security of Ukraine, inciting interethnic, racial, religious hatred;
– those related to taxes, budget, amnesty;
– those referred by the Constitution and laws of Ukraine to the jurisdiction of the law enforcement agencies, the prosecutor’s office or the court.
