New Value Added Tax Law

The official text of the new VAT Law dated 3 April 1997 was published recently. The new VAT Law will be effective from 1 July 1997 replacing the previous VAT Decree dated 26 December 1992.

The new law introduces significant changes to the VAT system which may affect your business. The key provisions of the new VAT system are summerised below.

DEFINITION OF A TAXPAYER

VAT is payable by:

• entities whose monthly volume of VATable transactions is in excess of 600 non taxable allowances (currently approximately US$ 5,500), for any of operations;
• importers of goods, services or works;
• entities which engage in trade for cash, regardless of the sales volume;
• entities which engage in transport of cargo or passengers via the territory of Ukraine.