What equipment for energy infrastructure do MPs propose to exempt from VAT and customs duties?
The Verkhovna Rada registered draft laws No. 11343 and No. 11344 on exemption from taxation and customs duties of equipment for energy infrastructure.
According to the explanatory note to Draft Law No. 11343, it is proposed to supplement subsection 2 of Section XX "Transitional Provisions" of the Tax Code with new paragraphs 871 and 88, according to which, temporarily, for the period of martial law in Ukraine, introduced by the Decree of the President of Ukraine "On the Introduction of Martial Law in Ukraine" dated February 24, 2022 No. 64/2022, approved by the Law of Ukraine dated February 24, 2022 No. 2102-IX, but not longer than until June 1, 2025
► operations on importation, transportation (shipment) in international postal and express mail to the customs territory of Ukraine under the customs regime of import of goods specified in paragraph 935 of Section XXI "Final and Transitional Provisions" of the Customs Code of Ukraine will be exempt from VAT
► operations on importation of goods into the customs territory of Ukraine under the customs regime of importation of goods carried out under sale and purchase agreements to which the Energy Community Secretariat is a party, concluded between suppliers of goods and/or service providers and business entities licensed for certain types of economic activities in the electricity market (electricity generation, electricity transmission, electricity distribution) and natural gas (transportation, distribution and
According to the explanatory note to the draft law No. 11344, it is proposed to temporarily, for the period of martial law in Ukraine, introduced by the Decree of the President of Ukraine "On the Introduction of Martial Law in Ukraine" of February 24, 2022 No. 64/2022, approved by the Law of Ukraine of February 24, 2022 No. 2102-IX, but not more than until June 1, 2025, to exempt from import duty the goods imported, transported (sent) in international postal and express shipments to the customs territory of Ukraine under the import customs regime and classified under the following codes according to the Ukrainian Classification of Goods for Foreign Economic Activity
8410 (hydraulic turbines),
8406 (water steam turbines and other steam turbines),
8502 20 40 10, 8502 20 40 90, 8502 20 60 10, 8502 20 60 90, 8502 20 80 10, 850220 80 90 (Electric generating sets and rotating electric converters
(from 7.5 kV-A to 375 kV-A, 375-750, over 750),
8411 (except for turboprop engines),
8504 40 84 00 (inverters with a capacity of not more than 7.5 kV-A),
8504 40 88 00 (inverters with a capacity of more than 7.5 kV-A),
8541 43 00 00 (photovoltaic cells assembled in modules or mounted in a panel),
8504 31 21 00, 8504 31 29 00, 8504 31 80 00, 8504 32 00 90, 8504 90 17 90 (components for the production of transformers).
It is worth noting that the Cabinet of Ministers recently announced the preparation of draft laws on the abolition of customs duties and VAT on power equipment. At the same time, the initiators of the above projects are not the Cabinet of Ministers, but a group of MPs.
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