Next week, the Verkhovna Rada may consider a bill №3656 on reducing VAT rate on transactions for the supply of certain types of agricultural products from 20% to 14%.

In particular, it is proposed to set the value added tax rate at 14% on transactions for the supply of customs territory of Ukraine and importation into the customs territory of Ukraine of whole milk, cattle, pigs, wheat, rye, barley, oats, corn, soybeans, flax seeds, rapeseed and rapeseed, sunflower and other oilseeds, sugar beets.

"Farmers support this bill and are waiting for its adoption. After all, having abolished the special VAT regime in 2017, which allowed farms not to pay taxes, but to direct funds for their development, the state did not offer farmers anything in return. This bill allows agricultural producers to reduce costs and be able to invest additional funds in the purchase of machinery, equipment, etc.," Deputy Chairman of UAC Denys Marchuk said.

In addition, lowering UAC rate will help the agricultural sector to be hundred percent legal. Currently, about 40% of agricultural land in Ukraine is cultivated illegally where a large volume of products is produced. The harvest is exported through so-called "twists" - manipulations, as a result of which VAT is returned to the exporter from the state budget, which was not actually paid. Reducing the VAT rate will reduce the effectiveness of such fraudulent schemes.

UAC calls on the Verkhovna Rada to consider this bill as soon as possible!