From January 1, 2018 to January 1, 2020, the Tax Code allows a two-year installment on import VAT when importing industrial equipment for processing of agrarian products, writes Agro Center.
The list of preferential equipment includes refrigerators, dryers, milking machines, milk separators and other equipment for milk processing.
Producers of chocolate, sugar, beer, baked goods, pasta, and confectionery will also be able to import equipment in accordance with new rules. It also includes the import of presses, crushers and other machines for the production of wine, cider, fruit juices or similar beverages, incubators and brooders for poultry, machines for cleaning, sorting or calibrating seeds, grains or dry legumes.
The procedure for granting such a privilege is yet to be decided on by the Cabinet of Ministers. It is known that the exemption will not apply to the equipment imported from Russia or occupied territories of Ukraine.
Lawmakers also ruled that if a producer violates the rules of installment on import VAT, the imported equipment will be confiscated and sold at an auction. If the equipment with an installment on import VAT is leased, sub-leased or sold, the producer will have to pay the full amount of the import VAT, as well as a fine of 120%.