The Verkhovna Rada of Ukraine has registered the bill №4571-2, which amends the Tax Code. In particular, the controversial issue of additional conditional VAT on goods and services purchased for growing crops and animals that were lost due to force majeure will be settled.

Experts from the advisory center “Smart Country” (which was founded with the help of the UAC) and registered in parliament by Oleksandr Kovalchuk (a People’s Deputy) drafted the bill. The document proposes not to charge VAT to agricultural producers on such goods or services as those that are not used in economic activities.

"The UAC has been insisted to resolve this issue for a long time. In 2020, Odesa farmers who lost their crops due to drought faced the need to pay additional VAT on goods and services purchased to grow crops that were lost. The tax service insisted that such expenses should be treated as used in non-economic activities and, accordingly, should be taxed. At the same time, this state of affairs leads to double payment of VAT by farmers and, consequently, even greater losses, although, according to the law, farmers are exempt from paying this tax in case of crop loss,” the UAC Deputy Chairman Denys Marchuk said.

Parliamentary committees consider the bill. The UAC calls on the People's Deputies to support it and help agricultural producers.