Ukraine. No more VAT refunds for oilseed exporters from March 2018

11.12.2017

On Thursday, December 7, 2017, the Verkhovna Rada of Ukraine passed the Law of Ukraine No. 6776-d “On Amending the Tax Code of Ukraine for Ensuring Balanced Budget Revenues in 2018.” The Law cancelled VAT refunds for sunseed, soybean and rapeseed exporters from March 1, 2018.

In view of a similar experience in the grain sector a few years ago, it is safe to say that the current situation will entail a decrease in domestic oilseed prices and eventually hit the Ukrainian grower hard.

A positive effect may be felt by the fat-and-oil sector of Ukraine, taking into consideration the surplus of crushing capacities and the high level of oilseed exports, reports UkrAgroConsult.

As a reminder, the export share in 2016/17 total oilseed production equaled 87% for rapeseed, 67% for soybeans and 1.3% for sunseed.

UkrAgroConsult will keep you updated on consequences of such a decision and will focus on possible scenarios of further market behavior.

 

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