Specially for Latifundist.com
Yesterday, on 31 October 2023, the long-awaited resolution of the Cabinet of Ministers of Ukraine was published, which introduced new rules for the export of grain. However, do not rush to tune in to the new processes. This resolution is only preparatory and does not introduce new rules.
What does the document provide for instead?
The resolution currently regulates only the formation of a list of verified agricultural entities. In other words, it actually stipulates which companies will be subject to the new export and VAT refund rules in the future.
Thus, in order to be included in the list, a company must register with the State Agrarian Register (SAR) and file a relevant application.
The criteria for including a company in the list are as follows:
1. no bankruptcy and liquidation procedures;
2. the company must have a valid VAT payer status as of 23.02.2022 and as of the date of application;
3. no tax debt for failure to meet the terms of refund of foreign currency earnings. That is, not the existence of the violation itself, but rather the outstanding liability accrued by the tax authorities for such a violation;
4. no report of the tax authorities regarding the failure to establish the location of the company in the process of checking compliance with currency legislation;
5. carrying out at least one export transaction in the period from 23.02.2022 to 27.10.2023 (inclusive), for which the bank has completed currency supervision (full payment received) on or before 27.10.2023 inclusive.
The company will only need to attach a letter from the bank in any form confirming compliance with criterion 5 to the specified application. The bank must also send the same letter to e-mail of the Ministry of Agrarian Policy. The Ministry of Agrarian Policy receives all other data directly from the tax authorities. The decision on inclusion or refusal, as well as subsequent exclusion, is made within two business days and is reflected in the SAR.
Subsequently, if a company does not meet any of the criteria set out in paragraphs 2, 3, 4, it may be excluded from the list.
It is also worth noting that the project on verification of agribusiness entities is being implemented in relation to exporters of the following goods: wheat, rye, barley, corn, soybeans, rocketcress seeds or rapeseeds, sunflower seeds, soybean oil, sunflower oil, rocketcress oil, rapeseed oil, mustard oil, oilcake.