Government has approved VAT installment for equipment imported for Ukrainian companies

The Government has approved payment of the VAT by installment for equipment imported by companies to Ukraine for their own manufacturing facilities.

What’s it about?

The key aim of this decision is to support the modernization of the manufacturing capacities of Ukrainian companies.

The decision stipulates the following:

Procedure for the installment of the VAT on equipment imported to Ukraine by companies for their own manufacturing facilities;

Taxpayers are granted a VAT installment for the period stated in their application. However, the installment can’t be longer than 24 months. During this period, interest rates and fines stipulated by the Tax Code are not levied.

What’s the benefit?

- growth of production;

- new jobs;

- higher productivity.

“We propose to stimulate the import of modern equipment to modernize the facilities of Ukrainian companies. For this, we grant an installment with the duration of up to 24 months for the payment of the VAT on imported equipment. In our opinion, this will contribute to higher productivity and profit as well as will help create new jobs”, the Minister of Finance said.