Ukraine. Law That Establishes Temporary Tax Exemption

On 7 May 2015 the Law of Ukraine “On Amendments to the Tax Code of Ukraine Regarding Tax Exemption for Some Pharmaceuticals and Medical Products” (hereinafter - the “Law”) takes force. Comments on the changes the Law makes are presented in our Newsletter of 20 April 2015.

To remind, the Law establishes VAT exemption for the following transactions until 31 March 2019:

1. Carriage into the customs territory of Ukraine of (a) pharmaceuticals registered with the State Register of Pharmaceuticals, (b) medical products registered with the State Register of Medical Equipment and Medical Products and/or released into circulation according to the law on technical regulation and conformity assessment
2. First supply (by importer or producer) on the customs territory of Ukraine of the pharmaceuticals and medical products mentioned above
3. Supply of pharmaceuticals and medical products which were carried into and/or supplied on the customs territory of Ukraine as part of the transactions we list above (carriage into the customs territory of Ukraine and first supply) within the healthcare system from the Ministry of Health of Ukraine (hereinafter – the “Ministry”) and/or from state enterprises founded according to its order, to the end customer within budget programs and/or as part of complex measures in the healthcare sphere

This exemption applies if the carriage and/or supply is based on contracts with specialized organizations concluded for performance of agreements between the Ministry and relevant specialized organizations as part of budget programs and/or of complex measures in the healthcare sphere.

Source: Ernst & Young Ukraine