Ukraine suspends VAT and customs duties on imports for the period of martial law (updated: the law came into force)

On 5 April 2022 the Law of Ukraine No. 2142-ІХ as of 24 March 2022 "On Amendments to the Tax Law of Ukraine and other Legislative Acts of Ukraine on Enhancement of Legislation for Martial Law Period" (the "Law No. 2142-IX") came into force. It introduces customs reform that significantly simplifies all customs formalities to promptly ensure the needs of Ukraine during the period of martial law.

The Law № 2142-IX enacted the Resolution of the Cabinet of Ministers of Ukraine No. 330 as of 20 March 2022 "On some issues of customs control and customs clearance of goods, including vehicles, under martial law", which specified the simplified procedure of customs clearance for goods and vehicles.

The amendments provide for the temporary suspension of import duty (for all companies) and VAT (for legal entities that are registered as single tax payers of I, II and III groups (except those that pay 3% of income) applied to imports of goods, except for those originating in or exported from russia or any state deemed as an aggressor state or exported from occupied territory of Ukraine as provided by laws, as well as vehicles. The latter provided that they are imported by individuals are also exempt from excise duties. Alcoholic beverages and tobacco products are subject to the exceptions to the customs preferences.

Analysis of the main amendments related to the temporary suspension of import duty and the simplification of customs procedures for the period of martial law is available via the link.

For further information please contact Asters' Partner Alexey Pustovit, Counsel Olesia Kryvetska and Associate Yelyzaveta Herasymchuk.