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Ukraine in fresh VAT cut promise

  • Feb 11, 2014 | Richard Asquith

Ukraine in fresh VAT cut promise

Ukraine has declared that it will attempt to re-introduce a VAT (Podatok na dodanu vartist (PDV)) cut alongside plans to cut the corporation tax rates.

Latest 2015 VAT decrease plans

The latest commitment includes a reduction in the Value Added Tax rate from 20% to 17% in 2015.  Plans to implement a similar Ukrainian VAT cut in 2014 were dropped at the end of last year as the economy continued to struggle.

In addition to the promised VAT cut, there are also plans to reduce the corporate income tax rate from the current 18% to 16% by the start of 2016.

It has also recently improved the Ukrainian VAT registration process, including a new VAT registration threshold of UAH 300,000 per annum.  Most tax payers in Ukraine are on monthly electronic VAT returns

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.