Legislation update

January 28, 11:40 Source: APK-Inform Views: 903

Grain exporters to receive the VAT refund – Ukrainian Agrarian Association

The Law on the State Budget of Ukraine adopted by the Verkhovna Rada dd. January 16, 2014, does not contain any changes to the Tax Code of Ukraine concerning the exports of grains. Therefore, according to the Law #713-VII dd. December 19, 2013, since January 1, 2014, Ukraine faces the VAT refund during export operations with grains and industrial crops, declared Ukrainian Agrarian Association on January 21.

According to the announcement, due to return to the practice of the VAT refund on grain exports, the revenues of domestic agricultural producers will increase. According to estimations of Ukrainian Agrarian Association, the profitability of grain production will increase to 10-12%, and will assist to activation of the agricultural sector - creation of new work places, increasing of wages in the sector, expansion of investment programs.

According to Vladimir Makar, Head of Ukrainian Agrarian Association, reducing of the number of intermediaries on the market is the main plus of the decision. Because only grain producers and the enterprises which purchase grain directly from agricultural producers, will be able to get the VAT refund. The export operations will involve maximum one intermediator, but not 2-3, as it was in previous years. Thus, grain producers will receive more than a fair price for their agricultural products, summed up the expert.

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