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Customs Code should be changed for successful implementation of bill on FX earnings in agricultural sector – UCAB
KYIV. Jan 18 (Interfax-Ukraine) – Bill No. 8166-d on optimizing foreign exchange earnings from the sale of agricultural products will tentatively come into force from March 2023, at the same time, for its successful functioning, it is necessary to coordinate the Customs Code of Ukraine with the legislative initiatives introduced by the Parliament.
In addition, as reported on the website of the Ukrainian Agribusiness Club (UCAB) on Wednesday, the Cabinet of Ministers needs to adopt by-laws specifying the duration of the new export security regime, the list of export goods subject to its provisions and the minimum prices for them.
UCAB reminded that bill No. 8166-d will enter into force approximately from March 2023, since from the date of its adoption, the President is given 14 days to sign it. In addition, the document enters into force one month after its publication and will remain in effect until the end of martial law in Ukraine.
UCAB said that the bill provides for an improved exchange control mechanism for the following commodities: foreign trade code: 1001 (wheat), 1003 (barley), 1005 (corn), 1201 (soybean), 1205 (rapeseed), 1206 (sunflower seeds), 1512 (sunflower oil), 2306 (sunflower cake and meal).
These goods can only be exported by a VAT payer with a valid registration. In case of not violating the currency legislation of Ukraine over the past 12 months, the VAT payer is authorized to export these goods without any additional regulation within the established limit according to the existing procedure: every month it is allowed to export goods for an average doubled amount of foreign exchange earnings returned to Ukraine, calculated for previous six months.
In turn, if the export demand exceeds the calculated limit, then a tax invoice shall be registered for this additional amount at a rate of 14% or 20%. After the return of foreign exchange earnings, the exporter will have the opportunity to adjust the invoice from a tax rate of 14% or 20% to 0% and receive a VAT refund.
