Will the tax in gardening be canceled in Ukraine?

    Since the beginning of 2017, the special VAT regime has been abolished in Ukraine. Instead, government subsidies were introduced. However, from January 1, 2018, agricultural producers may be denied subsidies. In particular, for gardening, the loss of special regimes and subsidies can lead to a leveling up of efforts made by business and public associations to develop the industry. As a result, such actions by the authorities can lead to a long decline in one of the promising areas of agriculture - horticulture, despite the restoration of the state support program and the repayment of arrears over the past years. And hence, Ukraine risks not only losing the opportunity to enter the world market with another type of product, but also become an importer of fruits and berries in general.

   Increase in the VAT on the supply of fruit and berries has already led to an increase in prices for these products by 2 times, and the introduction of a common VAT system for fruit and berry producers in 2018 will not simply drive into the shadow of existing producers, but will stop the development of the industry as a whole.

  However, in the last days of the year, there is a chance not to bring the situation to a critical state - on December 19, 2017, the bill No. 7420 was registered. The document provides for the inclusion of agricultural products in the list of products, for which the VAT rate will be 7%, which fully corresponds to the existing tax system in Europe, which not only compares the opportunities of European and Ukrainian gardeners, but will also ensure the development of the industry and state in the future.

Recourse:

Ukrsadprom Assosiation

Tel: + 38 044 232 22 68

E-mail: info@ukrsadprom.org