TAX ALERT 20.02.25 | Digest of Key Tax News

Suggested alternatives to the draft law on taxation of the import of goods into Ukraine via international postal and express shipments

On February 03, 2025, the Verkhovna Rada of Ukraine registered alternative draft laws No. 12429-1, No. 12429-2, and No. 12429-3 to the draft law No. 12429, a general overview of which GOLAW provided in the digest.

Draft laws No. 12429-2 and No. 12429-3 are similar in content. In particular, they additionally suggest establishing a transitional period (for two or five years, respectively, but not less than 12 months from the date of termination or cancellation of martial law in Ukraine) for the purpose of gradual implementation of the suggested provisions. In particular, during this period, import of goods valued at up to EUR 100 or EUR 50, respectively, will not be subject to VAT.

Meanwhile, draft law No. 12429-1 suggests imposing VAT on distance sales of goods while leaving the current rule on the non-taxation of operations on the import of goods into Ukraine valued at up to EUR 150 unchanged. In addition, it suggests:

• for the period of martial law, to exempt from VAT the import of components of unmanned systems by individuals for the production and/or repair of such systems, provided that they are subsequently transferred to military formations free of charge;
• to remove the provisions on the rates and list of military levy payers introduced by the Law of Ukraine No. 4015-IX and restore the previous norms, as well as establish the directions and proportions for the targeted use of the military fee by the state;
• for the period of martial law and for one year from the date of its termination or cancellation, to establish a moratorium on changing tax rates along with the procedure for their payment, expanding the list of taxable items, changing the procedure and deadlines for submitting reports, and changing other elements of taxes defined by the Tax Code of Ukraine.

In addition, on February 3, 2025, the Verkhovna Rada of Ukraine registered alternative draft laws No. 12430-1, No. 12430-2, and No. 12430-3 to the draft law No. 12430, which we also reviewed in the digest.

It should be noted that, unlike draft law No. 12430, none of its alternatives suggests applying a 10% customs duty to the entire value of goods imported into Ukraine via international postal/express shipments valued over EUR 150 and up to EUR 10,000 (instead of the amount exceeding EUR 150).

Draft laws to support the aircraft industry are registered

On February 13, 2025, the Verkhovna Rada of Ukraine registered:

• draft law No. 13016 “On Amendments to Section XX ‘Transitional Provisions’ of the Tax Code of Ukraine on Support of the Aircraft Industry”;
• draft law No. 13017 “On Amendments to Subparagraph 13 of Clause 4 of Section XXI ‘Final and Transitional Provisions’ of the Customs Code of Ukraine on Support of the Aircraft Industry.”

The aforementioned draft laws, in particular, suggest extending, for the period of martial law and for one year from the date of its termination or cancellation, the exemption for aircraft manufacturers from VAT and import duties on the importation of goods used for the needs of the aircraft industry. It is also suggested to exempt such manufacturers from corporate income tax and land tax.

It is worth noting that such benefits were effective from January 1, 2017, and ceased to be valid starting January 1, 2025.

Draft law on changes to the administration of environmental tax and rent payment is published

On February 4, 2025, the draft law “On Amendments to the Tax Code of Ukraine in connection with the adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’” was published on the official website of the Ministry of Finance of Ukraine. Inter alia, it suggests to:

• oblige the authorities issuing integrated environmental permits to provide the tax authorities with a list of business entities to which they have been issued;
• calculate the rent payment for special water use based on the data from such permits.

It should be noted that the introduction of integrated environmental permits is envisaged by the Law of Ukraine No. 3855-IX, which will come into force on August 08, 2025. Within four years, such permits will completely replace permits for air pollution emissions, special water use, and waste processing operations.

The Supreme Court on the certificate of force majeure as sufficient proof of its existence

On February 3, 2025, the Supreme Court, by its ruling, referred case No. 520/2941/24 to the Judicial Chamber for Taxes, Fees, and Other Mandatory Payments of the Cassation Administrative Court within the Supreme Court for revision of the previous positions.

The panel of judges noted that the certificate of the Chamber of Commerce and Industry submitted by the Company to confirm the existence of force majeure that made it impossible to fulfil obligations under a foreign economic contract cannot be indisputable evidence of its existence. Such a document should be subject to a critical assessment by the court, taking into account the established circumstances of the case and in combination with other evidence.

At the same time, the Supreme Court has repeatedly concluded in similar cases that the submission of a certificate of force majeure is sufficient evidence of its existence. It was also well established that a business entity is not obliged to prove the causal link between the occurrence of such circumstances and the failure to fulfil (late fulfilment of), in particular, tax obligations.

Therefore, the Judicial Chamber of the Supreme Court will provide a position on the issues, and thus, the upcoming court practice in similar cases may be influenced.