The Committee on Taxation and Customs Policy recommends that the Verkhovna Rada should adopt as a basis and in entirety the draft law on amendments to clause 2 of “Final Provisions” of the Law “On amendments to the Tax Code of Ukraine” re exempting defence product from taxation

Information Department of the Verkhovna Rada of Ukraine Secretariat
09 February 2015, 14:04

The bill (Reg. No. 1817) suggests not applying the privileged regime of VAT taxation to transactions on importing to the customs territory of Ukraine defence product from the territory of the state that is a party to international agreement on collective security or military international agreement if is another party to such international agreement is the occupant state (aggressor) in regard to Ukraine.  

Committee members deem that adoption of the bill, with consideration of the proposals made, will allow settle the issue of tax-free import (exemption from VAT taxation) of defence product, including for the needs of antiterrorist operation, to the territory of Ukraine, and will also help eliminate potential opportunity of funding military-industrial complex of the occupant state (aggressor).