The law on the exemption from VAT of scrap operations came into force, but ..

Today, after the publication in the Voice of Ukraine No. 237-238 of 12.12.18, the Law of Ukraine "On Amendments to the Tax Code of Ukraine and certain other legislative acts of Ukraine on the improvement of administration and revision of the rates of certain taxes and duties" came into force.

Paragraph 60 of this Law provides for amendments to clause 2Z of subsection 2 of section XX "Transitional provisions" of the Tax Code of Ukraine, namely, the replacement of the figures "2019" with the figures "2022", which extends until January 1, 2022 the term of the exemption from taxation of value added tax on transactions supply, including operations on import of waste and scrap of ferrous and non-ferrous metals.

At the same time, the Tax Code stipulates that the list of such waste and scrap of ferrous and nonferrous metals is approved by the Cabinet of Ministers of Ukraine. For example, in 2015, the relevant amendments to the Resolution entered into force only on March 31, 2017 only on March 24, despite the fact that the law began to apply from January 1.

Three months ago, it was necessary for the state authorities to approve the earlier similar analogous Resolution. Such a delay has a negative impact on the stability of the supply of metallurgical plants by scrap metal. During the preparation of the necessary decision of the government, the scrap metal is suspended. This is due to contradictions with the tax authorities in terms of determining the term from which scrap metal operations are exempted from value added tax. Litigation arises, and despite the fact that the judiciary decides business in favor of the procurers, the activity of the metal-working industry is suspended.

A letter was sent from the Ukrainian Association of Secondary Metals and Resources to the Prime Minister of Ukraine Groysman VB with the request to commission the Ministry of Economic Development, the Ministry of Finance, the Ministry of Finance and the Ministry of Justice to begin the immediate preparation of the Decree of the Cabinet of Ministers of Ukraine "On approval of lists of wastes and scrap of ferrous and nonferrous metals, the operations for the supply of which, in particular import operations, temporarily, until 2022, are exempt from taxation value-added tax ".

We hope that appropriate measures will be taken promptly without negative consequences for the metal-working industry.