Ukraine. Compromise was made on oilseed export VAT refunds

29.05.2018

On May 22, 2018, Ukraine’s Parliament passed Draft Law No. 7403-d of April 04, 2018 “On amendments to the Tax Code of Ukraine concerning certain issues of VAT taxation during export of oilseeds from Ukraine.” The decision was supported by 249 lawmakers, reports UkrAgroConsult.
According to the Law, the cancellation of soybean and rapeseed export VAT refunds shall not apply to agricultural companies who grew the above crops on farmlands themselves.

As a reminder, on December 7, 2017, the Verkhovna Rada (Parliament) of Ukraine adopted at second reading and in full the draft Law of Ukraine “On amendments to the Tax Code of Ukraine on ensuring the balance of budget revenues in 2018” (reg. No. 6776-d), which cancelled export VAT refunds from the State Budget for oilseeds such as soybeans, rapeseed, and sunseed.

On December 21, 2017, the Verkhovna Rada made a decision to eliminate discrepancies in the text of the adopted Law of Ukraine “On amendments to the Tax Code of Ukraine on ensuring the balance of budget revenues in 2018”. Therewith it specified the provisions cancelling oilseed export VAT refunds from the State Budget: soybean and rapeseed export operations were exempted from VAT for the periods from September 1, 2018 to December 31, 2021 and from January 1, 2020 to December 31, 2021, respectively.

More detailed information on the latest trends in oilseeds/vegoils exports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Vegoils" by UkrAgroConsult.

Further prospects of the Black Sea oilseeds/vegoils market will be discussed at the VI International Conference “Black Sea Oil Trade”, which will take place on September 20, 2018 in Hilton hotel, Kiev, Ukraine.

In 2017 International Conference «Black Sea Oil Trade» attracted 250 delegates from 25 countries and 150 companies. Conference participants are usually represented by producers and crushers of oilseeds, traders, enterprises for deep processing of vegetable oils, investment companies, banks, law, shipping, brokerage, insurance and surveyor companies.

 

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