Ukraine in fresh VAT cut promise
- European News
- 12 February 2014 | Richard Asquith
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