Due to the efforts of the European Business Association (hereinafter – the Association), the Ministry of Revenue and Duties of Ukraine has issued the Letter “On Customs Clearance of Goods» No7822/7/99-99-19-05-01-17 dated 4 April 2014 (hereinafter – the Letter), which, among others, provides an explanation concerning the order of customs clearance and taxation of goods, which are transported by international postal and express deliveries as well as goods imported to the customs territory of Ukraine by subjects of the commercial activity in spite of the chosen customs regime. The need for such a clarification was caused by the fact that the Law of Ukraine “On Prevention of Financial Disaster and Creation the Grounds for the Economic Growth in Ukraine” No1166-VII dated 27 March 2014 (hereinafter – the Law No1166-VII) came into force.
Background: The Law No1166-VII came into force on 1 April 2014 and made numerous changes to the Tax Code of Ukraine No2755-VI dated 2 December 2010 (hereinafter – TCU). Considering the fast-track procedure for the adoption of such a legal act, not all of its provisions were properly correlated with the other existing laws of Ukraine. In particular, the Association promptly drew the attention of the authorized state bodies to the inconsistency of certain provisions of the Law No1166-VII with the requirements of the Customs Code of Ukraine No4495-VI dated 13 March 2012, particularly concerning the order of the customs clearance and taxation of goods transported in international postal and express deliveries and asked provide to the relevant clarification to the business community.
We are pleased to announce that on 4 April 2014 the Ministry of Revenue and Duties of Ukraine issued the Letter which, among others, contains an explanation regarding:
- order of taxation of goods, which are received by international postal and express deliveries separate for businesses structures and citizens;
- order of customs clearance and taxation of goods imported to the customs territory of Ukraine by the subjects of commercial activity in spite of the chosen customs regime. The customs clearance of goods, with a value exceeding the equivalent of 150 EUR, should be declared in written form and taxed by duty under the rates specified by the Customs Tariff of Ukraine as well as by value added tax (hereinafter – VAT) according to the TCU. At the same time, goods, with a customs value that exceed the equivalent of 100 EUR but less than 150 EUR, shouldn’t incur VAT.
The Association would like to express our gratitude to all member-companies for their active position regarding this issue. We will continue to work on resolving problematic questions to protect the legitimate interests of the Association’s member-companies.