On May 22, 2020, amendments to the Tax Code of Ukraine, adopted by the Parliament of Ukraine and signed by the President of Ukraine, were published, which among many changes contain provisions that will also affect the interests of investors in alternative energy sources in Ukraine.
By the mentioned changes an item 64, subsection 2 on "peculiarities of value added tax collection" is stated in the new wording.
Earlier this item exempted from VAT taxation the operations on import into the customs territory of Ukraine of the following goods:
- wind power generating sets and rotating electric converters;
- semiconductor photosensitive devices, including photovoltaic cells, whether or not assembled;
- electric transformers, electric static converters, inductors and chokes.
From now on, the above goods are excluded from the list of imported goods exempt from value added tax.
This means that now when importing equipment for alternative energy sources will have to pay VAT, which is determined at 20% of the value of imported goods.
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NAZALI TAX & LEGAL |