economy news

IMF demands to change VAT rules for Ukrainian farmers

05.09.2014 |

In the area of fiscal policy the updated Memorandum between Ukraine and the IMF provides for a separate structural beacon that is a legally binding requirement. In this case it is the issue of payment of the value added tax in the agricultural sector.

According to this beacon, Ukraine is obliged to approximate the scheme of payment of VAT by farmers to the general regulations. Recently, the Ministry of Finance has presented its vision of changes in the VAT system in agricultural sector.

According to the presentation of the ministry the special scheme for payment of the VAT should retain only those enterprises whose annual revenue does not exceed UAH 20 mn and those using less than 3,000 hectares of land. Given these factors, less than 10% of agricultural enterprises, mostly the largest producers, will have to switch to the general VAT scheme.

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