State Tax Service of Ukraine informs that the Law of Ukraine dated 17.12.2020 № 1115-IX “On amendments to the Tax Code of Ukraine on the value added tax rate on operations for the supply of certain types of agricultural products” (hereinafter – the Law № 1115) entered into force on 25.02.2021, according to which 14% VAT rate is applicable to operations for the supply in the customs territory of Ukraine and import into the customs territory of Ukraine of agricultural products, classified by the following commodity items in accordance with Ukrainian classification of the FEA goods: 0102; 0103, 0104 10, 0401 (in the part of whole milk), 1001, 1002,1003, 1004, 1005, 1201, 1204 00, 1205, 1206 00, 1207, 1212 91 (hereinafter – operations for the supply of certain types of agricultural products), excepting operations on the import into the customs territory of Ukraine of goods specified in Paragraph 197.18 Article 197 of the Tax Code of Ukraine (hereinafter – the Code).
Provisions of the Law № 1115 are applied to tax periods starting from March 2021. As follows, operations with agricultural products will be subject to 14% VAT rate starting from 01.03.2021.
In order to implement provisions of the Code (taking into account amendments made by the Law № 1115) and to enable taxpayers to fulfill their tax obligation specified in Sub-paragraph 16.1.3 Paragraph 16.1 Article 16 of the Code, in particular as regards the submission of recent documents (including tax invoices / adjustments to tax invoices), related to the calculation and payment of taxes and fees, the State Tax Service has developed a draft of new forms of tax invoice / adjustment calculations to tax invoice, which contain lines and columns designed to display information on taxpayers’ operations for the supply of certain agricultural products subject to 14% VAT rate.
Relevant draft Order of the Ministry of Finance of Ukraine is agreed with interested executive authorities. After approval of the specified form of tax invoice according to the generally established procedure, the taxpayers will be able to draw up tax invoices for operations on the supply of certain types of agricultural products.
Prior to the entry into force of the new forms of tax invoice / adjustment calculations to tax invoice, which will contain the appropriate columns and indicators to reflect the supply of goods (agricultural products classified by commodity items according to Ukrainian classification of the FEA goods, defined in provisions of the Law № 1115), which, starting from 01.03.2021 will be subject to 14% VAT rate, the tax invoice / adjustment calculations to tax invoice by the taxpayers may not be drawn up and, accordingly, registered in the Unified Register of Tax Invoices (hereinafter – the URTI).
After the entry into force of the relevant Order of the Ministry of Finance of Ukraine, which will approve the specified forms of tax invoice / adjustment calculations to tax invoice, the taxpayers will be provided with opportunity to register tax invoices / adjustment calculations to tax invoices drawn up for operations for the supply of certain types of agricultural products in the URTI, specifically in the period from 01.03.2021 to the date of introduction of the new form of these documents.
Please note that penalties for violations of tax legislation are not applied, including for the non-registration (late registration) of tax invoices / calculation adjustments the URTI, committed during the period from 01.03.2020 to the last calendar day of month (inclusively) when ends the quarantine established by the Cabinet of Ministers of Ukraine throughout Ukraine to prevent the spread of coronavirus disease in Ukraine (COVID-19) according to Paragraph 521Sub-section 10 Section XX of the Code.