Legislative changes have been adopted, which abolish some privileges for the import of goods

On June 21, 2022, the Parliament of Ukraine adopted the Draft Law on Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine Concerning the Revision of Certain Tax Privileges No. 7418 dated May 30, 2022 (hereinafter – the "Law"). The Law abolishes some privileges for the import of goods, which were previously introduced due to martial law.

The Law should enter into force on July 1, 2022.

PwC experts in Ukraine analyzed the amendments prescribed by the Law. Please note that the final wording of the Law is not yet available, and our comments below are based on the previously published draft wording of the Law.

We believe that taxpayers applying or planning to apply the respective exemptions should take into account the resumption of customs payments on imports from the 1 of July, as well as decide on the further application of the simplified tax system.

We highlight the main amendments below.

• Imports of goods by single tax payers of the first, second and third groups are again subject to VAT and customs duties. Such goods can no longer be declared by submitting a preliminary customs declaration
  
• VAT, excise tax and customs duty again apply to the import by individuals of the following vehicles:
  • cars, bodies to them
  • trailers and semi-trailers
  • motorcycles
  • vehicles intended for the carriage of 10 persons or more
  • vehicles for the transportation of goods
    
• Single tax taxpayers can no longer be engaged in businesses related to import of the vehicles mentioned above
  
• New owners of cars equipped solely with electric motors are exempt from paying the mandatory state pension insurance fee.

We continue to monitor changes in legislation and keep you informed.