The Cabinet of Ministers of Ukraine has decided to exempt accumulators, generators, transformers and other important power equipment from VAT and import duties for this heating season. A corresponding resolution will be adopted today, Prime Minister of Ukraine Denys Shmihal said during a government meeting on November 8.
This will speed up the supply of necessary equipment to Ukraine for the heating season, help meet the demand of the population and help reduce prices for relevant products, the government emphasizes. If you remember, from April to June in Ukraine there was a “zero customs clearance” for cars.
“We are talking about gas generators, electric motors and generators, electric generator sets and rotating electric converters, transformers, electric accumulators, electric water heaters and heaters, as well as some other products for energy and heat supply. This is important in order to speed up repairs now, improve the provision of light and heat, meet the demand of the population, and also reduce prices for relevant products.”
fragment of the speech of the Prime Minister of Ukraine Denys Shmyhal at a government meeting
Last week, the head of the tax committee of the Verkhovna Rada, Daniil Getmantsev, among other ongoing initiatives, mentioned a project providing for exemption from imported VAT on equipment supplied for own needs (without the right to resale), in particular, electric generators.
At the same time, the State Customs Service of Ukraine recalled the rules for declaring and taxing generators when moving across the customs border of Ukraine. Thus, Article 374 of the Customs Code of Ukraine provides that generators costing up to 500 euros and weighing no more than 50 kg, transported by car, rail or sea, are exempt from written declaration and taxation. If generators are sent by post, express or unaccompanied baggage, the threshold for import tax-free is 150 euros. From the excess, as you know, you need to pay taxes: 32% (import duty 10% of the invoice value and VAT 20% of the invoice value, taking into account the amount of import duty) on the amount exceeding the limit of 150 euros. For example, for a generator with an invoice value of 700 euros, imported through a car checkpoint, you must first pay customs duties from an amount exceeding 500 euros – 64 euros.
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10% duty from 200 euros – 20 euros; 20% VAT from 220 euros (invoice value + duty) – 44 euros.
With this resolution, the Cabinet of Ministers exempts the import of generators and other power equipment from taxation, which, of course, is good news. The main thing is that Ukrainian stores do not start to abuse this opportunity in their own interests, given how prices for batteries, generators and other products have risen in the face of increased demand.
Interestingly, the layoffs were made as part of “measures to counter the coronavirus SARS-CoV-2.” It looks like it should have been done that way. The full text of the resolution should subsequently appear on the website of the Cabinet of Ministers (so far there is no document on the website). At the same time, Yaroslav Zheleznyak, a deputy from the Holos faction, has already published a copy of the document with a complete list of goods temporarily exempt from taxation.