The Ministry of Agrarian Policy proposes a through VAT

On July 26, 2021, under the chairmanship of the First Deputy Minister of Agrarian Policy and Food of Ukraine Taras Vysotsky, a regular meeting of the working group was held to promptly resolve issues related to taxation in the agricultural sector.

The event took place in the format of a ZOOM conference. it was attended by the leadership of the Ministry of Finance, the State Tax Service, representatives of regional state administrations, specialized agrarian associations and public associations.

Taras Vysotsky outlined to all participants the state of readiness for legislative changes regarding fuel licensing in terms of agricultural producers.

“Today, there is a final compromise version of this document, which was agreed upon by the traffic police, the Ministry of Finance, the Ministry of Agrarian Policy and relevant agricultural associations. It is expected that the proposed changes will be considered at the next session of Parliament and should be adopted,” he said.

As for the value added tax rate for taxing transactions for the supply of certain types of agricultural products, Taras Vysotsky emphasized: “The Ministry proposes a through VAT reduction in order to socially support the consumer. In addition, proposals should be made on the taxation of family farms. The solution of the problem of equalizing the competitiveness of the production and sale of food products in terms of taxation is also relevant.

Representatives of the working group on the prompt resolution of issues related to taxation in the agricultural sector have developed proposals for the Resolution of the Cabinet of Ministers No. 565, which approved the Procedure for providing family farms with additional financial support. These changes will be proposed for consideration and adoption.

The participants also discussed the problematic issues of stopping tax invoices, special budget subsidies for the maintenance of shares, as well as ways to hedge risks for agricultural producers in the face of uncertainty.

At the next meeting of the working group, the participants will additionally consider the issue of equalizing the competitiveness of producers in terms of taxation; tax invoices; taxation of family farms.

minagro.gov.ua