This Law identifies the payers of the value added tax, determines its objects, basis of assessment, rates, lists VAT-free and VAT-exempt operations, provides the specificities of taxation of export/import transactions, defines the notion of tax voucher [bill], accounting procedures, and the remittance of VAT payments to the budget.
Article 1. Terminology
In the context of this Law the following terminology shall be interpreted as stated below:
1.1. Tax, taxation, taxpayer, taxable transaction (in appropriate cases) are the value-added tax, the value-added taxation, a value-added tax payer, a transaction liable for the value-added tax.
( Item 1.1 of Article 1 in the  wording  of  Law  of  Ukraine #2505-IV of March 25, 2005 )
1.2. Person shall be understood as any of the persons listed below, regardless of whether they are residents or non-residents:
- irrespective of form and term of this investment;
( The Paragraph changed according to Law of Ukraine #2899-III (2899-14) of December 20, 2001 )
- Other legal entities that do not have the status of a business entity;
- Individuals (citizens, foreign subjects, and stateless persons) engaged in business as entrepreneurs, according to current legislation, or importing (sending) goods to Ukraine's customs territory.
- representative office of a non-resident without the legal entity status.
( The Paragraph added to Item 1.2 of Article 1 according to Law of Ukraine #2505-IV of March 25, 2005 )
For the taxation purposes, two or more entities, which exercise joint activities without setting up a legal entity, shall be deemed to be a separate entity within the scope of such activities.
( The Paragraph added to Item 1.2 of Article 1 according to Law of Ukraine #2505-IV of March 25, 2005 )
The accounting for joint activity results shall be carried out by the taxpayer authorised therefor by other entities in accordance with conditions of the contract separately from accounting for the performance results of such a taxpayer.
( The Paragraph added to Item 1.2 of Article 1 according to Law of Ukraine #2505-IV of March 25, 2005 )
For the taxation purposes, the business relations between parties to joint activities shall be considered equivalent to relations on the basis of separate contracts governed by the civil law.
( The Paragraph added to Item 1.2 of Article 1 according to Law of Ukraine #2505-IV of March 25, 2005 )
The procedure of the tax accounting and reporting on results of the joint activities shall be specified by the central tax agency.
( The Paragraph  added  to Item 1.2 of Article 1 according  to  Law of
Ukraine #2505-IV of March 25, 2005 )
1.3. Taxpayers shall be understood as persons who, pursuant to this Law, are under the obligation to make deductions and contribute to the budget taxes paid by buyers or persons importing (sending) goods to Ukraine's customs territory.
1.4. Supply of goods shall mean any transaction performed under purchase and sale contracts, barters, supplies and other civil legal agreements that provide for the transfer of property rights for such goods in return for compensation irrespective of terms of rendering such compensation, including transactions involving free supply of goods (results of works) and transactions involving the transfer of the property by the lessor (leasing provider) to the balance sheet of the lessee (leasing recipient) under contracts of the financial lease (leasing), or the provision of the property under any other contracts, whose terms and conditions provide for the postponement of the payment and the transfer of the title in such property not later than the date of the last payment.
( Paragraph 1 of Item 1.4 of Article 1 changed and amended according to Law of Ukraine #469-IV of January 16, 2003; in the wording of Law of Ukraine #2642-IV of June 3, 2005; changed and amended according to Law of Ukraine #2771-IV of July 7, 2005 )
The transactions of the hand-over of commodities within the scope of the storage (custody) contracts, trust management, operational lease (leasing), other contracts governed by the civil law, which do not provide for vesting the ownership (right of the utilisation or administration) of such commodities to another entity shall not be treated as supply.
( The Paragraph changed and amended according to Law of Ukraine #469-IV of January 16, 2003; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
Supply of services shall be understood as any transactions of the civil-law nature involving the performance of the work, providing services, granting the right to use or administer commodities, including intangible assets, as well as the delivery of any property objects other than commodities against compensation, and the transactions of the free performance of work or provision of services. The supply of services, for instance, shall comprise granting the right to use or administer commodities within the scope of lease (leasing), delivery, licensing contracts or other methods of handing over the right to a patent, copyright, trademark, other objects of the intellectual property, including the industrial property.
( Paragraph 3 of Item 1.4 of Article 1 in the wording of Law of Ukraine #2505-IV of March 25, 2005; changed and amended according to Law of Ukraine #2771-IV of July 7, 2005 )( Item 1.4 of Article 1 in the wording of Law of Ukraine #550/97 of September 26, 1997 )
1.5. Accounting period shall be understood as a period for which a taxpayer must accrue and pay taxes to the budget.
1.6. Tax commitment [burden] shall be understood as the total amount of the tax received (accrued) by the taxpayer for the accounting period as defined hereunder.
1.7. Tax relief shall be understood as that sum by which the taxpayer has the right to reduce the tax commitment [burden] of the accounting period as stipulated hereunder.
1.8. Budget indemnity shall be understood as that sum which must be refunded to the taxpayer as a result of excessive taxation, in cases determined hereunder.
1.9. Collection of debt claims shall be understood as a banking service whereby a client's debtor is exacted sums on account of his debt or when bills, checks, and other accounting and commercial documents are accepted on that client's instructions.
1.10. Factoring shall be understood as a transaction in the course of which the first lender assigns the third party's right to claim repayment to another lender, with prior or subsequent setoff of the debt to the first lender.
1.11. "Cash method" shall be understood as the tax accounting method, under which the date of the emergence of tax liabilities is determined as the date of credit (receipt) of funds on the bank account (cash desk) of the taxpayer or the date of receipt of other types of the compensation for the value of commodities (services) supplied (to be supplied) thereby, and the date of the emergence of the tax credit eligibility shall be defined as the date of the debit of funds from the bank account (disbursement from the cash desk) of the taxpayer or the date of the provision of other types of the compensation for the value of the commodities (services) supplied (to be supplied) thereto.
(  Item 1.11 added to Article 1 according to Law of  Ukraine  #2505-IV of March 25, 2005 )
1.12. "Duty free shop" shall be understood as an outlet for the retail trade in commodities (ancillary services) being under the customs regime, under which the commodities (ancillary services) not designated for the consumption on the customs territory of Ukraine, are imported, staying and delivered under the customs control in the customs border checkpoints open for the international traffic and in other zones of the customs control specified by customs agencies of Ukraine without charging the import duty, this tax, and other taxes and duties, for which the taxation base is the value of such commodities (ancillary services), the non-tariff regulation methods, and licensing of activities involving the retail trade in commodities (services ancillary to such sale), including the excisable commodities.
(  Item 1.12 added to Article 1 according to Law of  Ukraine  #2505-IV of March 25, 2005 )
( Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
( Sub-item 1.13.1 of Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
( Sub-item 1.13.2 of Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
( Sub-item 1.13.3 of Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
( Sub-item 1.13.4 of Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
( Sub-item 1.13.5 of Item 1.13 of Article 1 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
1.14. "Ancillary services" shall be understood as the services, whose value is included into the customs value of commodities being exported or imported in accordance with provisions of the customs legislation.
(  Item 1.14 added to Article 1 according to Law of  Ukraine  #2505-IV of March 25, 2005 )
1.15. Other terms shall have the meanings defined by taxation laws or other laws to the extent not contradicting this Law and other taxation laws.
(  Item 1.15 added to Article 1 according to Law of  Ukraine  #2505-IV of March 25, 2005 )
1.16. "Tax promissory note" shall be understood as a written unconditional monetary commitment of a taxpayer to pay an appropriate amount of funds to the budget in accordance with the procedure and within time frames defined hereby, which is confirmed by commercial banks by means of backing; the said promissory note is issued to defer the payment of the value-added tax charged on the import of commodities into the customs territory of Ukraine.
A tax promissory note shall not be disputed; the amount indicated in a no-redeemed promissory note shall be treated as the tax debt to be repaid in accordance with the procedure envisaged by the legislation for the repayment of the tax debt.
(  Item 1.16 added to Article 1 according to Law of  Ukraine  #2505-IV of March 25, 2005 )
1.17. Corporate rights, affiliated person, resident, non-resident, goodwill, funds, securities, derivatives, goods, dividends, interest, royalty, credit, deposits, leasing (lease), barter, goods (works, services) received free of charge, gross production (turnover) costs, fixed assets and intangible assets subject to depreciation shall be interpreted as defined by the Law of Ukraine "On Company Income Tax".
( The Item changed and amended according to Law of Ukraine #1523-III of March 02, 2000; #346-IV of December 24, 2002 )
1.18. The usual prices shall be understood and applied according to the rules set forth in item 1.20 of Article 1 of the Law of Ukraine "On Company Income Tax".
( The Item added to the Article according to Law of Ukraine #346-IV of December 24, 2002 )
1.19. "International transportation service" shall be understood as the service of the transportation of passengers, their luggage, cargo and international correspondent with any vehicle, provided that the said transportation occurs via the territory of two and more countries and the point of departure or the point of destination, or both of them are located within the territory of Ukraine. At that, the residency status of parties to the contract on such transportation is disregarded for taxation purposes.
( Article 1 has been amended by adding Item 1.19 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.20. "International passenger and luggage road transportation service" shall be understood as the transportation services provided by the payer of this tax and involving the transportation of passengers and their luggage for a fee or free of charge, if the said transportation contract is subject to provisions of the Convention on the Contract for the International Carriage of Passengers and Luggage by Road (CVR) of 1 March 1973 .
( Article 1 has been amended by adding Item 1.20 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.21. "International cargo road transportation service" shall be understood as the transportation services provided by the payer of this tax and involving the transportation of the cargo for a fee, if the place of receipt of the cargo for the carriage and the cargo destination specified in the contract are located in different countries, of which Ukraine is one, and the said transportation contract is subject to provisions of the Convention on the Contract for the International Carriage of Goods by Road (CMR) of 19 May 1956 .
( Article 1 has been amended by adding Item 1.21 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.22. "Integral (indivisible) international passenger, luggage, cargo and international correspondence transportation service" shall be understood as the service involving the carriage (delivery) of passengers, their luggage, cargo and international correspondence from a point of departure (the acceptance of the cargo or the international correspondence for the carriage) in the territory of Ukraine to a point of the customs clearance, from a point of the customs clearance to a point of destination (delivery) outside the state border of Ukraine and/or between points outside the customs border of Ukraine, as well as from the point of departure (the acceptance of the cargo or the international correspondence for the carriage) outside the territory of Ukraine to a point of the customs clearance within the state border of Ukraine and from a point of the customs clearance to a point of destination (delivery) within the customs border of Ukraine.
If a tax payer provides the integral (indivisible) international passenger, luggage or cargo road transportation service, then the cost of such services shall be divided for taxation purposes in proportion to sections of the carriage subject to different rates of taxation with this tax or the tax exemption.
( Article 1 has been amended by adding Item 1.22 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.23. "International courier correspondence" (hereinafter referred to as "international correspondence") shall be understood as properly packaged commodities and other objects transported (forwarded) by an express courier with any mode of transport across the customs border of Ukraine for the delivery to the recipient within the time frame agreed by the parties. The customs and tax regimes of the international courier correspondence shall be the same as the customs and tax regimes of the international mail correspondence.
( Article 1 has been amended by adding Item 1.23 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.24. "International mail correspondence" (hereinafter referred to as the "international correspondence") shall be understood as commodities and other objects categorised as such under the Law of Ukraine "On Procedure of Importation (Dispatch) into Ukraine, Customs Clearance and Taxation of Personal Effects, Commodities and Vehicles Imported (Dispatched) by Individuals into the Customs Territory of Ukraine" , for instance under the rules of the International Postal Union.
( Article 1 has been amended by adding Item 1.24 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.25. "Vehicle" shall be understood as a ground-based, underground, water, underwater, air and space motorised vehicle intended to carry passengers and their luggage, cargo and international correspondence.
( Article 1 has been amended by adding Item 1.25 according to Law of Ukraine #1451-VI of June 4, 2009 )
1.26. "Repair" shall be understood as the transactions of the provision of services of making good deficiencies in commodities, bringing them to an operable condition, restoring their service life or features.
A repair covered with definitions of item 42 of Article 1 of the Customs Code of Ukraine shall be deemed international.
( Article 1 has been amended by adding Item 1.26 according to Law of Ukraine #1451-VI of June 4, 2009 )
Article 2. Taxpayers
A taxpayer shall be:
2.1. any entity, which:
a) exercises or plans to exercise business activities, and registers as a payer of this tax on the basis of its voluntary decision;
b) is subject to the mandatory registration as a payer of this tax;
c) imports commodities (ancillary services) in volumes taxable with this tax in accordance with provisions of this article.
2.2. Any entity, which has registered as a taxpayer by its voluntary decision.
( Item 2.2 of Article 2 changed and amended according to Law of Ukraine #2642-IV of June 3, 2005 )
2.3. An entity shall be subject to the mandatory registration as a taxpayer in the following cases:
2.3.1. if the total amount from the exercise of transactions of the supply of commodities (services), including those provided with the utilisation of a local-area or global computer network, which are subject to the taxation hereunder charged (paid, granted) to such an entity or by netting the liabilities to the third parties exceeds UAH 300 000 over the last twelve calendar months (exclusive of the value-added tax).
(  The amount specified in sub-item 2.3.1 of item 2.3 of Article 2  of
the Law shall be used to unregister the entities as payers of this tax
starting  from 1 January 2006 - see item 13 "Transitional  Provisions"
of Section 2 of Law #2505-IV of March 25, 2005 )
( Sub-item 2.3.1 changed and  amended  according  to  Law  of  Ukraine#2642-IV of June 3, 2005 )
2.3.2. An entity, which is authorised to pay the consolidated tax on taxation objects coming into existence as a result of the delivery of services by railroad transport enterprises from their core business, and by communication enterprises subordinated to the taxpayer, in accordance with the procedure specified by the Cabinet of Ministers of Ukraine.
2.3.3. An entity, which supplies commodities (services) on the customs territory of Ukraine using global or local-area computer networks; at that, a non-resident entity may exercise such activities solely via its representative office registered on the territory of Ukraine.
2.3.4. An entity, which engages into the transactions of the sale of the confiscated property, regardless of its attaining the total value of the commodity (service) supply transactions defined in sub-item 2.3.1 of item 2.3 hereof, as well as regardless of the taxation regime used by such an entity in accordance with the legislation.
2.4. Any entity, which imports (in case of individuals - brings in (dispatches) commodities (ancillary services) to the customs territory of Ukraine for the utilisation or consumption thereof on the customs territory of Ukraine, regardless of the taxation regime used thereby in accordance with the legislation, except for individuals not registered as taxpayers, who import (dispatch) commodities (objects) in the accompanied luggage or receive the same as mail correspondence within the scope of the non-trading circulation in volumes not subject to taxation under the customs legislation (except for the importation of vehicles or spare parts therefor by such individuals) and non-residents, who send mail correspondence in accordance with the rules of the Universal Postal Union to the customs territory of Ukraine, and recipients of such mail correspondence.
In case of the importation (dispatch) of commodities (objects) by individuals not registered as payers of this tax in volumes exceeding the non-trading circulation volume subject to the taxation, such individuals shall pay the value-added tax at the time of crossing of the customs border of Ukraine by such commodities (objects) without the registration on the basis of the customs value of commodities (objects), which exceed the non-trading circulation volume.
(  Article  2  changed  and  amended  according  to  Laws  of  Ukraine
#550/97-VR  of  September  26,  1997,  #25/98-VR  of January 15, 1998,#277-XIV  of  November  20, 1998, #1955-III of
September  14, 2000;  in  the  wording  of  Law  of  Ukraine  #2505-IV of  March 25, 2005 )
Article 3. Object of Taxation and Non-taxable Transactions
3.1. The transactions of tax payers involving the following shall be the object of taxation:
3.1.1. the supply of commodities and services, whose place of supply is located within the customs territory of Ukraine, including the transactions that involve:
the conveyance of the title to the object of pledge to the borrower (lender) for the repayment of the debt of the pledger;
the placement of a financial leasing object at the disposal of the leasing recipient;
the supplies of international passenger, luggage and cargo road transportation services, as well as services of the transportation of the international correspondence with any transport at the section from the place of their departure (acceptance for the transportation) in the customs territory of Ukraine to the point of their customs clearance, and from the point of their customs clearance to the point of destination in the customs territory of Ukraine;
the supplies of the international passenger, luggage and cargo (other than international correspondence) transportation services with any transport (other than the road transport) at the section from the place of their departure (acceptance for the transportation) in the customs territory of Ukraine to the border checkpoint for the exit outside the state border of Ukraine, as well as from the border checkpoint for the entry into the state border of Ukraine to the destination in the customs territory of Ukraine;
in other cases covered with this Law;
( Sub-item 3.1.1 of Item 3.1 of Article 3 in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
3.1.2. the importation of commodities (related services) under the import or re-import customs regime (hereinafter referred to as the "import") in accordance with provisions of chapters 29 and 30 of the Customs Code of Ukraine .
The transactions of the importation of the following into the customs territory of Ukraine shall be considered equivalent to the import for the purposes of taxation:
an object of leasing (other than the return of an operative leasing object earlier provided (exported) by the leasing provider or another entity acting on its instruction from the territory of Ukraine under the customs regime of the temporary export (import) for the free circulation in accordance with provisions of Chapter 34 of the Customs Code of Ukraine );
the object of the property pledge to the benefit of the pledgee (another entity on its instruction);
the property handed over into custody or for the use or for the disposal;
the commodities (related services) from under the duty-free shop, customs warehouse or special customs zone customs regime in accordance with provisions of chapters 35 to 37 of the Customs Code of Ukraine for the subsequent free circulation in the territory of Ukraine (other than the supply to the territory of another duty-free shop, customs warehouse and special customs zone (only for the special customs zone that have identical taxation conditions with this tax in accordance with the law);
products of processing (finished products) from under the customs regime of the processing in the customs territory of Ukraine under provisions of chapter 38 of the Customs Code of Ukraine ;
products of processing (finished products) from under the customs regime of the processing outside the customs territory of Ukraine in accordance with provisions of chapter 39 of the Customs Code of Ukraine (other than vehicles sent under the processing customs regime outside the customs border of Ukraine for the purposes of their repair and returned to the customs territory of Ukraine for the subsequent free circulation);
commodities (related services) under other contracts that do not provide for the conveyance of the ownership of such commodities (related services) or provide for the exchange thereof for corporate rights or securities, for instance, if the said importation is associated with the return of commodities due to the termination of the said contracts;
in other cases specified with this Law.
The transactions of the supply of commodities (related services) into the customs territory of Ukraine under the customs regime of the elimination or destruction in accordance with provisions of chapter 40 of the Customs Code of Ukraine or the customs regime of the abandonment to the benefit of the state in accordance with provisions of chapter 41 of the Customs Code of Ukraine shall not be treated as imports and shall be exempted from taxation with this tax. Further transactions of the supply of such commodities (related services) in the customs territory of Ukraine shall be taxed according to the generally applicable procedure;
( Sub-item 3.1.2 of Item 3.1 of Article 3 in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
3.1.3. the supply (exportation, forwarding) of commodities (related services) under the export or re-export customs regime (hereinafter referred to as the "export") in accordance with provisions of chapters 31 and 32 of the Customs Code of Ukraine for money or other forms of the compensation (fees).
The following shall be considered equivalent to exports for the purposes of the taxation with this tax:
the supply of the international passenger, luggage and cargo transportation services and the international correspondence services in events covered with sub-item 6.2.4 of item 6.2 of Article 6 hereof;
the supply of commodities (related services) being in the free circulation on the territory of Ukraine into the regime of a duty-free shop, customs warehouse or special customs zone established in accordance with provisions of chapters 35 to 37 of the Customs Code of Ukraine ;
the supply of a financial leasing object outside the customs border of Ukraine;
in other cases specified with this Law.
The transactions of the supply of commodities or services outside the customs or state border of Ukraine, which are not the object of taxation with this tax under item 3.2 of Article 3 of this Law or exempted from taxation with this tax under item 5 of Article 5 of this Law (other than sub-items 5.1.2 and 5.1.7 of item 5.1 and item 5.2 of Article 5 of this Law) shall not be deemed export.
( Sub-item 3.1.3 of Item 3.1 of Article 3 in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
(  Item  3.1   of Article 3 changed and amended according to  Laws  of
Ukraine #25/98-VR of January 15, 1998, #277-XIV of November
20,  1998,  #469-IV of January 16, 2003; in the wording  of
Law of Ukraine  #2505-IV of March 25, 2005 )
3.2. The following operations shall not be subject to taxation:
3.2.1. the issue (emission), placement in any management forms and cash sale (redemption, buy-out) of the securities issued into the circulation by business entities, the National Bank of Ukraine, the Ministry of Finance, local self-administration bodies in accordance with the law, including investment and mortgage certificates, real estate transactions fund certificate, derivatives, and corporate rights expressed in forms other than securities; the exchange of the said securities and corporate rights expressed in forms other than securities for other securities; the clearing, settlement, registration and depository activities at the securities market; and asset management activities (including the pension assets, bank management funds) in accordance with the law.
Provisions of this sub-item shall not apply to transactions of the sale of blank traveller's, banking and personal cheques, securities, settlement and payment documents, plastic (settlement) cards;
(   Sub-item  3.2.1  of  Item 3.2 of Article  3  changed  and  amended
according  to  Laws  of  Ukraine  #977-XIV  July 15, 1999,#2831-III of November 29, 2001; in the wording of  Law  of
Ukraine #2505-IV of March 25, 2005 )
3.2.2. the placement of the property into the storage (custody), as well as the leasing (lease), except for the financial leasing;
the return of the property from the storage (custody) to the owner thereof, and the property earlier handed over into leasing (lease) to the leasing provider (lessor), except for the property handed over into the financial leasing;
the accrual and payment of the interest or commissions as a part of the lease (leasing) payment within the scope of a financial leasing contract in the amount not exceeding the double discount rate of the National Bank of Ukraine set as of the date of accrual of such interest (commissions) over the appropriate period of time charged on the value of the leasing object provided within the scope of such a financial leasing contract; in case of a financial leasing contract in a foreign currency, the interest payment for taxation purposes shall be determined in UAH at the exchange rate set by the National Bank of Ukraine as of the time of payment;
the provision of the property into the pledge (mortgage) to a lender (creditor) and/or to secure another valid claim of the creditor; the return of such property from the pledge (mortgage) to the owner thereof after the termination of validity of the relevant contract, if the place of such provision (return) is located on the customs territory of Ukraine;
monetary payments of the principal of the consolidated mortgage debt and the interest accrued thereon, the consolidation and/or sale (purchase) of the consolidated mortgage debt, the replacement of a certain part of the consolidated mortgage debt with another part, or the return (buy-out) of such consolidated mortgage debt by the resident or to the resident's benefit in accordance with the law;
(  Sub-item  3.2.2  of  Item  3.2 of Article  3  changed  and  amended
according to Law of Ukraine #469-IV of January 16, 2003; in
the wording of Law of Ukraine #2505-IV of March 25, 2005 )
3.2.3. the provision of insurance, co-insurance or re-insurance services by entities licensed to exercise insurance activities in accordance with the law, as well as the services of insurance (re-insurance) brokers and insurance agents related to such activities;
the provision of the universal social and pension insurance, non-state pension insurance services, raising and servicing pension deposits;
(  Sub-item   3.2.3  of Item 3.2 Article 3 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
3.2.4. Circulation of currency values (including the national and foreign currency), banking metals, bank notes and coins of the National Bank of Ukraine, except for those used for the numismatic purposes, whose taxation is based on their sales value, issue, circulation and cancellation of the state lottery tickets introduced under a licence of the Ministry of Finance of Ukraine; payment of the pecuniary winnings, pecuniary prizes and pecuniary awards; taking of bets, including by means of the exchange of money for tokens or other hryvnia substitutes intended for the use in gambling machines and other gambling equipment, deliveries of the non-sealed postage stamps of Ukraine, envelopes or postcards with non-sealed postage stamps of Ukraine, except for the collectible stamps, envelopes or postcards for the philately purposes, which are taxed on the basis of their sales value.
( Sub-item 3.2.4 of Item 3.2 of Article 3 changed according to Law of Ukraine #550/97 of September 26, 1997; Law of Ukraine #932-XIV of July 14, 1999; in the wording of Law of Ukraine #977-XIV of July 15, 1999; changed according to the Law of Ukraine #1969-III of September 21, 2000 )
3.2.5. the provision of the cash collection, payment and cash services, raising, placing and repaying funds under loan, deposit, (pension) deposit, funds and securities (corporate rights and derivatives) management contracts, the contracts for entrusting, providing, managing and re-assigning financial loans, credit guarantees and banking sureties by the entity, which provided such loans, guarantees or sureties;
( Paragraph 1 of Sub-item 3.2.5 of Item 3.2 of Article 3 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
- Sales, in return for money or securities, of bills [bonds, debentures], except collection of debt claims and factoring (factor) transactions, except for the factoring transactions, if the object of the debt are currency values, securities, including compensation documents (certificates), investment certificates, fixed-income mortgage certificates, housing cheques, land bonds and derivatives;
( Paragraph 2 of Sub-item 3.2.5 of Item 3.2 of Article 3  changed  and
amended  according to Laws of Ukraine #977-XIV of July  15,
1999, #2505-IV of March 25, 2005 )
- The importation of property as technical or charitable (humanitarian) aid in accordance with provisions of international contracts of Ukraine, which are accepted as binding by the Supreme Council (Parliament) of Ukraine, or in accordance with the law.
( Paragraph 3 added to  Sub-item  3.2.5  of  Item  3.2  of  Article  3
according to Law of Ukraine #2505-IV of March 25, 2005 )
(  Sub-item  3.2.5  of  Item  3.2 of Article  3  changed  and  amended
according  to  Law of Ukraine #550/97 of  September  26,
1997 )
3.2.6. Payment of fees for services rendered by executive bodies and local self-administration authorities to individuals or entities, which services are established as mandatory under current legislation, including registration fees and those for licenses (permits), certificates, state duties, etc.;
3.2.7. the payment of salary (other equivalent disbursements), as well as pensions, scholarships, subsidies, and grants in the monetary form at the expense of budgets or the Pension Fund of Ukraine or universal social insurance funds (except for those provided in kind);
the payment of dividends and royalties in the monetary form or in the form of securities, which are carried out by the issuer;
the provision of commission (brokerage, dealing) services in the field of the trade in and/or management of securities (corporate rights), derivatives and foreign currency valuables, including any monetary payments (including commissions) to the stock or foreign currency exchanges or over-the-counter stock trading systems, or members thereof in connection with the organisation of the trade in securities by licensed traders in securities, as well as derivatives and foreign currency valuables.
(  Sub-item  3.2.7  of  Item  3.2 of Article  3  changed  and  amended
according  to  Laws of Ukraine #977-XIV of July  15,  1999,
#1523-III of March 02, 2000; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
3.2.8. Deliveries for consideration of the aggregate gross assets of the tax payer (taking into account the value of the goodwill) to another taxpayer.
( Paragraph 1 of Sub-item 3.2.8 of Item 3.2 of Article 3 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 2 of Sub-item 3.2.8 of Item 3.2 of Article 3 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
The delivery of the aggregate gross assets shall be understood as the delivery of an enterprise as a separate object of entrepreneurship or inclusion of the gross assets of an enterprise or a part thereof in the assets of another enterprise. At that, the purchasing enterprise shall acquire rights and obligations (become the legal successor) of an enterprise selling such assets.
( Paragraph 4 of Sub-item 3.2.8 of Item 3.2 of Article 3 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
In case of engaging in common (joint) activities, the transfer of goods (work, services) to the balance sheet of the tax payer authorised to keep the record of results of such joint activities by the contract shall be deemed the delivery of such goods (work, services).
(  Sub-item 3.2.8 of Item 3.2.  in  the  wording  of  Law  of  Ukraine#977-XIV of July 15, 1999 )
( Sub-item 3.2.9 of Item 3.2 of Article 3 deleted according to Law of Ukraine #977-XIV of July 15, 1999 )
3.2.9 The free transfer of objects of all ownership forms, which are held in the balance sheet of one taxpayer and handed over into the balance sheet of another taxpayer, into the state ownership or the community ownership of territorial communities of villages, towns, cities, or into their joint ownership, if such transactions are carried out on the basis of decisions of the Cabinet of Ministers of Ukraine, central and local executive agencies, and local self-administration bodies made within the scope of their authority.
This provision shall apply to:
- transactions of the free transfer of objects from the balance sheet of the taxpayer, whose property is in the state or community ownership, to the balance-sheet of another legal entity, whose property is in the state or community ownership respectively;
- transactions of the free transfer of non-privatised housing fund objects (including publicly used places and house-related buildings and structures), as well as the social infrastructure objects (including the non-completed construction objects) from the balance sheet of the taxpayer to the balance sheet of a legal entity, whose property is owned by the state or community, or directly to the balance sheet of the relevant local council.
For the purposes of this sub-item, the following shall be understood as social infrastructure objects:
- pre-school, secondary and vocational secondary educational establishments, children musical and arts schools;
- health-care establishments, medical examination, prevention and employee aid stations;
- gymnasiums and sports places, stadiums, children camps;
- clubs and houses of culture;
- libraries and library collectors;
- utility objects, including the electric power, gas, thermal energy, water supply and waste water disposal networks, buildings and structures intended for servicing the same (boiler houses, heat plants, sewerage and water-supply facilities, sewers and equipment thereof);
- fire stations and fire-fighting machinery and equipment;
( Sub-item 3.2.9 added to Item 3.2 of Article 3 according  to  Law  of
Ukraine #169/98 of March 4, 1998; in the wording of  Law
of  Ukraine 163-XIV of October 6, 1998; changed and amended  according
to Law of Ukraine #977-XIV of July 15, 1999; in the wording
of  Laws   of   Ukraine  #1330-XIV  of  December  21,  1999;  #1924-IV of June 29, 2004 )
3.2.10. The delivery of paid extracurricular education services by a non-school educational establishment to alumni, pupils and students.
( Sub-item 3.2.10 added to Item 3.2 of Article 3 according to Law of Ukraine #1841-III of June 22, 2000 )( Sub-item 3.2.11 of item 3.2 of Article 3 has been suspended for the year 2004 according to Law of Ukraine #1344-IV of November 27, 2003 )
3.2.11. the provision by authorised banks of the services involving the trust management of bank-managed funds, the payment of the fee for managing a real-estate transactions fund, the transfer of funds for funding the construction from the construction financing fund, the payments under mortgage certificates in accordance with the law.
( Sub-item 3.2.11 added to item 3.2 of Article 3 according to Law of Ukraine #3045-III of February 07, 2002; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
3.2.12. in terms of the payment of the arbitration fee and the reimbursement for other expenses related to the dispute settlement by an arbitration tribunal according to the law.
( Sub-item 3.2.11 added to item 3.2 of Article 3 according to Law of Ukraine #1701-IV of May 11, 2004 )    
(  Sub-item  3.2.13  of Item 3.2 of Article 3  has  been  deleted according to Law of Ukraine #2771-IV of July 7, 2005 )
3.2.14. the provision of the sea merchant fleet agency and chartering services by ship agents to the benefit of non-residents, which provide the international passenger, luggage, cargo or international correspondence transportation services;
( Sub-item 3.2.14 added to Item 3.2 of Article 3 according to Law of Ukraine #2642-IV of June 3, 2005; in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
3.2.15. the exportation of commodities from the customs border of Ukraine under the customs regime of the temporary exportation in accordance with provisions of Chapter 34 of the Customs Code of Ukraine or under the customs regime of processing in accordance with provisions of Chapter 39 of the Customs Code of Ukraine, including operative leasing objects or vehicles for the purposes of the repair thereof;
( Sub-item 3.2.15 added to Item 3.2 of Article 3 according to Law of Ukraine #1451-VI of June 4, 2009 )
3.2.16. the supply of commodities (related services) into the customs territory of Ukraine under the customs regime of the abandonment to the benefit of the state in accordance with provisions of chapter 41 of the Customs Code of Ukraine. The subsequent supply of such commodities (related services) in the customs territory of Ukraine shall be taxed at the appropriate tax rates specified in Article 6 hereof.
( Sub-item 3.2.16 added to Item 3.2 of Article 3 according to Law of Ukraine #1451-VI of June 4, 2009 )
Article 4. Basis of Assessment
4.1 The taxation base of commodity (services) delivery transactions shall be determined on the basis of their contractual value determined at free prices, but not lower than usual prices taking into account the excise duty, the import duty, other national taxes and duties (statutory fees), in accordance with taxation laws of Ukraine (except for the value-added tax and the universal state pension insurance premium charged on the mobile cell communication services included into the price of commodities (services)). The contractual value shall be inclusive of any sums and the value of tangible and non-tangible assets, which are handed over to the taxpayer by the buyer directly or via any third party in connection with the compensation for the value of commodities (services).
( Item 4.1 changed and amended according to Law of Ukraine #977-XIV of July 15, 1999; the validity of Item 4.1 of Article 4 has been suspended for the year 2005 according to Law of Ukraine #2285-IV of December 23, 2004; in the wording of Laws of Ukraine #2505-IV of March 25, 2005, #2771-IV of July 7, 2005 )
If the usual price for commodities (services) exceeds the contractual price for such commodities (services) by more than 20 per cent, then the taxation base of the transaction of the delivery of such products (services) shall be determined at usual prices.
( Item 4.1 of Article 4 has been amended by adding Paragraph 2 according to Law of Ukraine #398-V of November 30, 2006 )
4.2. When selling goods (works, services) without payment or with partial payment of their cost in terms of money in the course of a barter deal, free transfer of goods (works, services), when paying in kind, on account of wages due individuals working for the taxpayer under employment contract, transferring goods (works, services), as per taxpayer's balance sheet, for non-production purposes, with the expenses not referred to gross production (turnover) costs and not being subject to depreciation, and with regard to the seller's affiliated person or a business entity not registered as a taxpayer, the basis of assessment shall be determined proceeding from the actual cost of the transaction, provided it is not lower than the usual price.
( Item 4.2, Article 4 changed according to Law of Ukraine #169/98 of March 4, 1998 )
4.3. With regard to goods imported (sent) to Ukraine's customs territory by taxpayers, the basis of assessment shall be the contract cost of these goods, provided it is not less than their customs value stated in the bill of entry, taking into account transportation, loading/unloading charges, insurance till the point of crossing Ukraine's customs border, brokerage, agency, commission, other fees involved in their transportation (transfer), and also payments for use of objects of intellectual property being part of these goods, excise, import, and other taxes, duties (mandatory payments), except the value added tax, being added to the cost of these goods (works, services) as per tax laws of Ukraine. The cost thus determined shall be translated into the Ukrainian hryvnia at the exchange rate of the National Bank of Ukraine effective on the end of the operations day, which precedes the day, when the commodity (the batch of commodities) becomes subject for the first time to the customs control regime in accordance with the customs legislation.
( Paragraph 1 of Item 4.3 of Article 4 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
With regard to services, which are supplied by non-residents with the place of provision on Ukraine's customs territory, the basis of assessment shall be the contract cost of these works (services), including excise and other taxes and duties (mandatory payments), except VAT, added to the prices of at which these works (services) are sold as per Ukraine's tax laws. The cost thus determined shall be translated into the Ukrainian hryvnia at the exchange rate of the National Bank of Ukraine effective on the end of the operations day, which precedes the day, when the protocol was compiled to certify the fact of the obtainment of services.
( Paragraph 2 of Item 4.3 of Article 4 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
4.4. With regard to ready products made on Ukraine's territory using give-and-take raw materials of nonresidents, when delivered in Ukraine, the basis of assessment shall be the contract cost of these products, taking into account excise, import, and other taxes and duties (mandatory payments), except VAT, added to the price of these ready products as per Ukraine's tax laws. The cost thus determined shall be translated into the Ukrainian hryvnia at the exchange rate of the National Bank of Ukraine effective on the date of emergence of tax obligations. If this be the case, the buyer shall pay the tax to the budget in keeping with taxation procedures established for imported goods, and the domestic manufacturer shall be liable for tax payments made by the seller of these products.
4.5. If any change in the amount of the compensation for the value of services takes place after the delivery of commodities (services), including the revision of prices subsequent to the delivery, and the re-calculation in case of the return of commodities to the provider of commodities, the amounts of the tax liability and tax credit of the supplier and the recipient shall be appropriately adjusted.
4.5.1. If such a recalculation results in the reduction in the compensation amount to the benefit of the tax payer being the supplier, then:
a) the supplier shall reduce as appropriate the amount of tax liabilities as a result of the tax period, during which such a recalculation took place, and send the calculation of the adjusted tax amount to the recipient;
b) the recipient shall reduce the amount of the tax credit as a result of such a tax period as appropriate, if it is registered as a taxpayer as of the adjustment date, and has increased the tax credit in connection with the receipt of such commodities (services).
4.5.2. If such a recalculation results in the increase in the compensation amount to the benefit of the tax payer being the supplier, then:
a) the supplier shall increase as appropriate the amount of tax liabilities as a result of the tax period, during which such a recalculation took place, and send the calculation of the adjusted tax amount to the recipient;
b) the recipient shall increase the amount of the tax credit as a result of such a tax period as appropriate, if it is registered as a taxpayer as of the adjustment date.
4.5.3. The reduction in the amount of tax liabilities of a taxpayer being the supplier shall only be allowed in case of the compensation for the value of commodities (services) provided to entities, which were not payers of the said tax as of the time of such a delivery:
a) in case of the return of the earlier supplied commodities into the ownership of the supplier with the provision of the full monetary compensation for the value thereof to the recipient;
b) in case of the revision of prices related to the guarantee replacement of commodities";
(  Item  4.5  of  Article 4 changed and amended according  to  Law  of
Ukraine #469-IV of January 16, 2003; in the wording of  Law
of Ukraine #2505-IV of March 25, 2005 )
4.6. The cost of containers determined by contract as empties returned (pledged), shall not be included in the basis of assessment. If the empties are not returned within the periods prescribed by the Cabinet of Ministers of Ukraine, but within not more than twelve calendar months, as of the date of their receipt, their cost shall be added to the basis of the recipient's assessment.
( Item 4.6 of Article 4 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
4.7. Should a tax payer engage in business activities by selling second-hand goods (trade on commission) purchased from persons not registered as tax payers, the taxation shall be based on the commission of such a tax payer. The rules of the trade on commission and commission calculation shall be established by the Cabinet of Ministers of Ukraine.
( Paragraph 1 of Item 4.7 of Article 4 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
If a tax payer engages in the delivery of goods received under contracts of commission (consignment), bail, assignment, trust management, other civil contracts, which authorise such a tax payer (hereinafter referred to as the commissioner) to sell goods in name and on behalf of another person (hereinafter referred to as the principal) without the transfer of the ownership of such goods, the taxation shall be based on the sales value of these goods determined according to the procedure established hereby. The date of the increase in commissioner's tax liabilities shall be the date determined according to the rules of item 7.3 hereof; the date of the increase in commissioner's tax credit amount shall be the date of the transfer of funds to the benefit o f the principal or the compensation for the value of the above mentioned goods otherwise. In this case, the tax liabilities of the principal shall increase on the date of the receipt of funds or another compensation for the value of goods from the commissioner.
If a tax payer (hereinafter referred to as the trustee) engage in the procurement of goods (work, services) on behalf and for the account of another person (hereinafter referred to as the principal), the date of the increase in the tax credit of such a trustee shall be the date of the transfer of funds (delivery of securities for the management, delivery of other documents confirming the debt relations) to the benefit of the seller of such goods (work, services) or the compensation for the value of such goods (work, services) otherwise; the date of the increase in the tax liabilities shall be the date of the transfer of such goods (results of work, services) to the principal. In this case, the principal shall not increase the tax credit by the amount of funds (value of securities, other documents confirming the debt relations) transferred to the trustee, but shall be entitled to the increase in the tax credit during the tax period of the receipt of goods (work, services) purchased by the trustee on his commission.
The said rule shall not apply to the transaction of the exportation of used commodities from the customs territory of Ukraine or the importation of used commodities into the customs territory of Ukraine within the scope of the said contracts, whose taxation is governed by the relevant provisions hereof.
( Paragraph 4 of Item 4.7 of Article 4 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )( Item 4.7, Article 4 changed and amended according to Laws of Ukraine#550/97 of September 26, 1997;   #169/98of    March  4,  1998;  in  the  wording of Law  of  Ukraine  #977-XIV of July 15, 1999 )
4.8. If a taxpayer performs the transactions of the delivery of commodities (services), which are the object of taxation under item 3.1 of Article 3 hereof, against the security of the buyer's debt liabilities granted to such a taxpayer in the form of a simple or transfer promissory note or other debt instruments (hereinafter referred to as the "promissory note") issued by such a taxpayer or a third party, the contractual value of such commodities (services), which may not be lower than the usual prices not taking into account the discounts or other reductions in the par value of such a promissory note, or, in case of interest-bearing promissory notes, the contractual value of such commodities (services), which may not be lower than the usual prices, increased by the amount of the interest, which has accrued or will have to be accrued on the par value of such a promissory note, shall be the taxation base.
If a taxpayer performs the transactions of the counter-delivery of commodities (services) on the drawee's consent, instead of the monetary repayment of the debt indicated in the promissory note, then the contractual value of such commodities (services), which may not be lower than the usual prices not taking into account the discounts or other reductions in the par value of such a promissory note, or, in case of interest-bearing promissory notes, the contractual value of such commodities (services), which may not be lower than the usual prices, increased by the amount of the interest, which has accrued or will have to be accrued on the par value of such a promissory note, shall be the taxation base.
For the taxation purposes hereunder, the issued or received promissory notes (except for tax promissory notes) shall not be considered as the means of payment and shall not change the amount of the tax credit or tax liability related to this tax, except for tax promissory notes.
(  Item 4.8 added to Article 4 according to Law  of  Ukraine  #977-XIV of July 15, 1999; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
4.9. If capital production assets or non-production assets are liquidated by an independent decision of the tax payer or transferred free of charge to a person not registered as a tax payer, as well as in the case of the conversion of capital assets into non-production assets, then, for the taxation purposes, such liquidation, transfer free of charge or the conversion shall be deemed to be the delivery of such capital production assets or non-production assets at usual prices effective at the moment of such a delivery, or, as regards the capital assets of Group 1, at usual prices but not less than their book value.
The rules of this item shall not apply to the cases of the liquidation of the capital production assets or non-production assets due to their destruction as a result of the circumstances of force-majeure, to the cases of such liquidation without the consent of the tax payer, including the case of the theft of capital assets, or the case of tax payer's submitting to the body of the state tax service a relevant document confirming the destruction, dismantling or conversion of a capital asset in another way, which result in the inability to use the capital asset in the future for its primary use.
In case of the obtainment of components, parts or other waste products having certain value as a result of the capital asset liquidation, the liquidation of such components, parts or other waste products shall be carried out according to the rules established for the liquidation of the capital asset.
( Item 4.9. added to Article 4 according to Law  of  Ukraine  #977-XIV of July 15, 1999 )
4.10. In case of the provision of services of the transit transportation (movement) of commodities (cargo, passengers) across the customs territory of Ukraine, the taxation base shall be calculated on the basis of the value of such transit transportation (movement) services provided on the customs territory of Ukraine (taking into account the distance from the place of the first crossing of the state border of Ukraine to the place of the last crossing of the state border of Ukraine).
( Item 4.10 added to Article 4 according to Law of Ukraine #2505-IV of March 25, 2005 )( Item 4.11 of Article 4 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
Article 5. Tax-Exempt Operations
5.1. The following transactions shall be exempted from taxation:
5.1.1. Deliveries of domestically manufactured baby food by "dairy kitchens" and special stores, and such food supplied from dispensation counters, in keeping with procedures and as per lists of foodstuff adopted by the Cabinet of Ministers of Ukraine;1
5.1.2. Supply (subscription) of periodical printed mass media and books, except for publications of erotic nature, pupil's books, handbooks and manuals manufactured in Ukraine, Ukrainian/foreign-language and foreign-language/Ukrainian dictionaries; the delivery of such periodical printed mass media on the customs territory of Ukraine;
( Sub-item 5.1.2 of Item 5.1 of Article 5 changed and amended according to Law of Ukraine #1460-III of February 17, 2000; the validity of Sub-item 5.1.2 has been suspended for the year 2004, except for transactions of the sale of pupil's copybooks, study books and study materials of the domestic manufacture under Law #1344-IV of November 27, 2003; the validity of Sub-item 5.1.2 has been resumed according to Law of Ukraine #1801-IV of June 17, 2004; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
5.1.3. The supply of children upbringing and education services by the children musical and artistic schools, schools of arts, houses of culture; the supply of pre-school upbringing services, the primary, secondary, vocational and higher education by establishments being in possession of a special permit (licence) for the supply of such services regardless of their organisational and legal status and the ownership form, in accordance with the list of such services specified by the Cabinet of Ministers of Ukraine, as well as the pupil or student accommodation services in boarding schools or hostels;
( Sub-item  5.1.3 of Item 5.1 of Article 5 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
5.1.4 supplies of special-purpose commodities for disabled people according to the list specified by the Cabinet of Ministers of Ukraine to the authorised executive authority, including passenger cars for disabled people to be paid from the state or local budgets, as well as the transactions of the gratis conveyance thereof to disabled people in cases covered by the legislation;
( Sub-item 5.1.4 of Item 5.1 of Article 5 in the wording of Law of Ukraine #463-V of December 14, 2006 )
5.1.5. supply of the pension disbursement and delivery services from the universal state pension insurance system, the pension disbursements under the non-state pension system, the insurance disbursements (including annuities) under long-term life insurance contracts, the disbursements from bank pension accounts, under pension deposits, as well as the monetary aid to the population provided at the expense of the budget under the approved social programmes;
( Sub-item  5.1.5 of Item 5.1 of Article 5 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
5.1.6. Civilian registry services rendered by duly authorized government agencies;
5.1.7. Supplies (including the supply by pharmacies) of medical and medicinal products registered and allowed for use in Ukraine in accordance with the list specified by the Cabinet of Ministers of Ukraine on an annual basis by 1 September of the year, which precedes the reporting year. If no such list is specified, the previous year's list shall apply;
( Sub-item 5.1.7 of Item 5.1 of Article 5 has been suspended for the year 2004, except for the sale of medical and medicinal products allowed for the utilisation in Ukraine according to the list specified by the Cabinet of Ministers of Ukraine under Law #1344-IV of November 27, 2003; in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
5.1.8. the supply of the health care services in accordance with the list specified by the Cabinet of Ministers of Ukraine by health care establishments being in possession of a licence for the supply of such services, and the supply of services by rehabilitation institutions for disabled people and disabled children being in possession of a licence for the supply of such services;
( Sub-item 5.1.8 of Item 5.1 of Article 5 changed and amended according to Law of Ukraine #1344-IV of November 27, 2003; in the wording of Law of Ukraine #2772-IV of July 7, 2005; changed and amended according to Law of Ukraine #3370-IV of January 19, 2006 )
5.1.9. the supply of vouchers for the sanatoria and resort treatment, health restoration and recreation on the territory of Ukraine for individuals in the age under 18 years;
( Sub-item 5.1.9 of item 5.1 of Article 5 changed and amended according to Law of Ukraine #1523-III of March 2, 2000; the validity of Sub-item 5.1.9 of item 5.1 of Article 5 has been suspended for the year 2004, except for the sale of vouchers for the sanatorium and resort treatment of children in establishments included into the list specified by the Cabinet of Ministers of Ukraine under Law #1344-IV of November 27, 2003; the validity of Sub-item 5.1.9 of item 5.1 of Article 5 has been suspended for the year 2004, except for the sale of vouchers for the children's rest in summery period from the day of becoming into force of the Law of Ukraine from June 17, 2004 "On introducing changes in the Law of Ukraine "On the State Budget of Ukraine 2004" till September 01, 2004 as per list adopted by the Cabinet of Ministers of Ukraine according to Law of Ukraine #1801-IV of June 17, 2004; in the wording of Law of Ukraine #2505-IV of March 25, 2005; changed and amended according to Law of Ukraine #931-V of April 13, 2007 )
5.1.10. Services rendered within quotas set by the Cabinet of Ministers of Ukraine, specifically:
- keeping of children in daycare centers, boarding schools, and "distributors" of the Interior Ministry;
- maintenance of retirement homes and hospices; accommodation (lodge and board) of the homeless at specially allocated places;
- catering for children at grade and vocational schools, and for patients at hospitals;
- catering, the provision of the materiel, utility and other services to be provided to individuals held in penitentiary institutions and investigation detainment centres in accordance with the list approved by the Cabinet of Ministers of Ukraine.
( The Paragraph added to Sub-item 5.1.10 of Item 5.1 of Article 5 according to Law of Ukraine #550/97 of September 26, 1997; changed and amended according to Law of Ukraine #1254-VI of April 14, 2009 )
( Sub-item 5.1.11 of Item 5.1 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 ) 
( Sub-item 5.1.12 of Item 5.1 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
5.1.13. the provision of the passenger transportation services (except for taxi services) within a populated area, for which the tariffs are regulated by a local self-administration body in accordance with its competence defined by law.
This exemption shall not apply to the passenger vehicles lease (rental) services;
(  Sub-item 5.1.13 of Item 5.1 of Article 5 in the wording of  Law  of
Ukraine #2505-IV of March 25, 2005 )
5.1.14. Religious services and delivery of special articles (except for excisable commodities) by religious organizations as per lists adopted by the Cabinet of Ministers of Ukraine;
( Sub-item 5.1.14 of Item 5.1 of Article 5 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
5.1.15. Funeral services as per the list approved by the Cabinet of Ministers of Ukraine, that can be rendered by any taxpayer;
( Sub-item 5.1.15 of Item 5.1 of Article 5 changed according to Law of
Ukraine #169/98 of March 4, 1998 )
5.1.16. The conveyance of the forfeited property, finds, treasures or property found to be ownerless into the ownership of the state;
( Paragraph 1 of Sub-item 5.1.16 of Item 5.1 of Article 5 changed and amended according to Laws of Ukraine #2505-IV of March 25, 2005, #463-V of December 14, 2006 )
The supply of such commodities in the course of subsequent transactions shall be taxed on a generally applicable basis;
( The Paragraph added to Sub-item 5.1.16 of Item 5.1 of Article 5 according to Law of Ukraine #2505-IV of March 25, 2005 )
5.1.17. The delivery (sale, transfer) of land plots, land shares, except for those located underneath the real-estate objects and included into the value thereof according to the legislation (taking into account provisions of sub-item 5.1.19 of item 5.1 of Article 5 hereof);
- the rent for the land plots owned by the state or the territorial community, if such rent is fully credited into the relevant budgets;
( Sub-item 5.1.17 of item 5.1 of Article 5 has been suspended for the year 2004 according to Law of Ukraine #1344-IV of November 27, 2003 )
( The validity of Sub-item 5.1.17 has been resumed according to Law of Ukraine #1801-IV of June 17, 2004 )
( Sub-item 5.1.17 in the wording of Law of Ukraine #1782-IV of June 15, 2004 )
( For the official construction of the Sub-item 5.1.17 refer to Decision of the Constitutional Court #2-rp/2004 of February 05, 2004 )

5.1.18. Free transfer of rolling stock by one railroad company or government-run passenger rail transport enterprise to the other one, in keeping with procedures established by the Cabinet of Ministers of Ukraine;
5.1.19. the free privatisation of the housing fund, including the publicly used places (including basements and attics) in apartment houses, the homestead land and land shares in accordance with the legislation, as well as the provision of services, whose obtainment is a pre-requisite to the privatisation of such housing fund, homestead land and land shares, according to the legislation;
- the free transfer of a corporate right (portion, part, unit, share) issued by a processing enterprise into the ownership of a private agricultural enterprise in accordance with the Law of Ukraine "On Specific Features of the Property Privatisation in the Agroindustrial Complex";
(  Sub-item 5.1.19 added to Item 5.1 of Article 5 according to Law  of
Ukraine  #550/97 of September 26,  1997;  changed  and
amended  according to Law of Ukraine #977-XIV of  July  15,
1999; #1523-III of March 2, 2000 ).
(  Sub-item 5.1.19 of item 5.1 of Article 5 has been suspended for the
year 2004, except for the free privatisation of the housing fund under#1344-IV of November 27, 2003 )
( The validity of Sub-item 5.1.19 has been resumed according to Law of
Ukraine #1801-IV of June 17, 2004 )
(  Sub-item  5.1.19  in  the  wording  of  Law  of   Ukraine  #1782-IV of  June 15, 2004; changed and amended according to Law of
Ukraine #2505-IV of March 25, 2005 )
5.1.20. the delivery of housing (housing fund objects), except for their first delivery.
For the purposes of this sub-item, the first delivery of the housing (housing fund object) shall be understood as:
a) the first transfer of the ready newly constructed housing (housing fund object) into the ownership of the buyer or the delivery of services (including the cost of materials acquired at the contractor's expense) related to the construction of such housing at the client's expense;
b) the first sale of the rehabilitated or completely overhauled housing (housing fund object) to a buyer, who is an entity other than the owner of such an object at the time of the decommissioning thereof in connection with such rehabilitation or complete overhaul, or the delivery of services ((including the cost of materials acquired at the contractor's expense) related to such rehabilitation or complete overhaul at the client's expense.
The provisions of this sub-item shall also apply to the first delivery of dacha (summer) or garden houses, as well as any other property objects registered according to the legislation as housing (housing fund), individual garages or individual places at garage parking lots.
(  Sub-item 5.1.20 added to Item 5.1 of Article 5 according to Law  of
Ukraine #550/97 of September 26, 1997; in the wording of
Laws #942-XIV of July 14, 1999, #1523-III of March 2, 2000 )
(  Sub-item 5.1.20 of item 5.1 of Article 5 has been suspended for the
year  2004  according  to  Law of Ukraine  #1344-IV  of
November 27, 2003 )
( The validity of Sub-item 5.1.20 has been suspended for the year 2004
except for the sale of the newly constructed housing or the conveyance
thereof into the ownership of individuals for the utilisation  as  the
place  of residence, if, before 01 January 2004, the housing has  been
conveyed  into  the  ownership  of  the  buyer  or  the  work  on  the
construction of such housing has been started against the  undertaking
of  the  buyer  or  investor, and the buyer or investor  has  paid  an
instalment of at least thirty per cent of the value of the total  area
of  such housing determined at prices effective as of the date of such
payment  according to Law of Ukraine #1801-IV of June  17,
2004  )
(  Sub-item  5.1.20  in   the  wording  of  Law  of  Ukraine  #1782-IV of June 15, 2004 )
5.1.21. The provision of the charitable aid, namely the handing over of goods (work, services) free of charge to persons listed in paragraphs 'a', 'b' and 'f' of Clause 7.11.1 of Article 7 of the Law of Ukraine "On Corporate Profit Tax" for the direct use for charitable purposes, as well as operations related to the handing over of such goods (work, services) free of charge to beneficiaries (subjects) of the charitable aid according to the legislation.
( The Paragraph in the wording of Law of Ukraine #1523-III of March 2, 2000; changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
Free transfer shall be understood as delivery of goods (works, services) to charity recipients without any cash, tangible or other kind of compensation of their value from such recipients or other entities. Violation of this provision shall be deemed as taxation avoidance by entity, which provides such commodities (services).
( Paragraph 2 of Sub-item 5.1.21 of Item 5.1 of Article 5 changed  and
amended according to Law of Ukraine #2505-IV of March  25,
2005 )
The Cabinet of Ministers of Ukraine shall institute rules of marking the commodities received as charitable aid, which would make it impossible to sell or otherwise alienate such commodities lacking such marking, and the procedure of the distribution of such commodities, and the control over the targeted distribution of the charitable aid in the form of particularly provided services.
( Paragraph 3 of Sub-item 5.1.21 of Item  5.1  of  Article  5  in  the
wording of Law of Ukraine #2505-IV of March 25, 2005 )
The marked commodities obtained for the charitable aid purposes, which are sold for money or other types of compensation, and/or the proceeds from such supply shall be confiscated to the credit of the state in accordance with the established procedure.
( Paragraph 4 of Sub-item 5.1.21 of Item 5.1 of Article 5 in the wording of Laws of Ukraine #794/97 of December 12, 1997, #2505-IV of March 25, 2005 )
The transactions of the provision of the charitable (for instance, humanitarian) aid in the form of commodities (work, services) subject to the excise duty, securities, intangibles and commodities (work, services) intended for the use in business shall not be exempted form the taxation, including the importation thereof into the customs territory of Ukraine, except for commodities covered by international treaties, to whose conclusion the Supreme Council (Parliament) of Ukraine has agreed.
( Paragraph 5 of Sub-item 5.1.21 of Item 5.1 of Article 5 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005; in the wording of Law of Ukraine #463-V of December 14, 2006 )
If other laws set rules of taxation of the charitable (including humanitarian) aid that differ from the rules of this sub-item, then the rules of this sub-item shall apply.
( Sub-item 5.1.21 of Item 5.1 of Article 5 has been amended by adding the Paragraph according to Law of Ukraine #463-V of December 14, 2006 )( Paragraph 6 of Sub-item 5.1.21 of Item 5.1 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )(  Sub-item 5.1.21 added to Item 5.1 of Article 5 according to Law  ofUkraine #644/97 of November 19, 1997 )
5.1.22 Payment of the value of the fundamental research, research and development work by an entity, which obtains such funds directly from the account of the State Treasury of Ukraine.
( Sub-item 5.1.22 added to Item 5.1 of Article 5 according to Law of Ukraine #977-XIV of July 15, 1999; changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
5.1.23. The provision of the following paid services by state and community-owned libraries:
the holding of book exhibitions;
the compilation of bibliography lists for course, diploma and scientific papers;
the compilation of catalogues for private libraries and libraries of enterprises, institutions and organisations;
the library/information services for the enterprises, institutions and organisations;
the preparation of data sheets and subject-oriented information letters;
the utilisation of the interlibrary loans (the dispatch of documents);
the utilisation of the night book loans;
the utilisation of databases created by other business entities, to which the library has gained access on a paid-for basis;
the execution of registration documents of library users;
the repair and the restoration of documents;
the reprographic reproduction of documents.
(  Sub-item 5.1.23 added to Item 5.1 of Article 5 according to Law  of
Ukraine  #1561-III of March 16, 2000; in the wording of Laws of Ukraine #2505-IV of March 25, 2005, #1388-VI of May 21, 2009 )
5.1.24. transactions of the cultural valuables considered as such in Article 8-2 of this Law by a value-added tax non-payer.
( Sub-item 5.1.24 added to Item 5.1 of Article 5 according to Law of Ukraine #535-V of December 22, 2006 )
5.2. The following operations shall be tax-exempt:
5.2.1. the supply of commodities (other than excisable commodities) and services (other than gambling and lottery business, and services of the supply of excisable commodities received under commission (consignment), surety, entrustment, trust management contracts and other contracts governed by the civil law that authorise such a taxpayer (hereinafter referred to as the "agent") to supply commodities in the name and on behalf of another entity (hereinafter referred to as the "principal") without conveying the ownership of the said commodities) that are manufactured directly by enterprises and organisations of public organisations of the disabled people, which are established by the public organisations of the disabled people and are owned by them, where the number of the disabled people having their major place of employment amounts to at least 50 per cent of the average registered staffing level during the preceding reporting period, and provided that the labour remuneration fund of such disabled people amounts during the reporting period to at least 25 per cent of the total labour remuneration expenses booked to the gross production expenses.
The term "direct" shall apply to the manufacture of commodities, as a result of which the amount of expenses related to processing (treatment, other forms of transformation) of raw materials, elements, components, other procured commodities used for manufacturing such commodities amounts to at least 8 per cent of the sales price of commodities so manufactured.
The said enterprises and organisations of public organisations of disabled people shall have the right to apply this privilege subject to the registration with the relevant tax agency to be done on the basis of submitting a positive decision of the interagency commission for activities of enterprises and organisations of public organisations of disabled people, and the relevant application of the taxpayer for such a privilege under the Law of Ukraine "On Fundamentals of the Social Protection of Disabled People in Ukraine".
In case of the violation of requirements of this sub-item by the taxpayer, the tax agency shall reverse its registration as an entity eligible for a tax break, and the tax liabilities of such a taxpayer shall be recalculated starting from the tax period, after which such violations were detected, in accordance with generally applicable taxation rules instituted hereby subject to the simultaneous application of relevant financial sanctions.
The tax reporting of such enterprises and organisations shall be submitted in accordance with the procedure prescribed by the legislation.
(  Sub-item  5.2.1  of  Item  5.2 of Article  5  changed  and  amended
according  to  Law of Ukraine #550/97 of  September  26,
1997;   in   the  wording of Law of Ukraine #698/97  of
December  5,  1997; changed and amended according to  Law  of  Ukraine#1523-III of March 2, 2000; in the  wording of   Laws   of
Ukraine  #1926-III of July 13, 2000, #2505-IVof March  25, 2005, #2960-IV of October 6, 2005 )
( Sub-item 5.2.2 deleted according to Law of Ukraine #1523-III of March 2, 2000 )
5.2.3. the gratis conveyance of products (work, services) of own make (other than those excisable) by ancillary rural farms and labour treatment/production workshops (shops, sections) of boarding houses and territorial service centres for old lonely people (pensioners), provided that the said conveyance is carried out to meet the own needs of the said establishments;
( Sub-item 5.2.3 of Item 5.2 of Article 5 changed and amended according to Law of Ukraine #463-V of December 14, 2006 )
5.2.4. Services rendered by agricultural manufacturers in the rural areas in terms of repair of schools, children's daycare centers, medical institutions, and allowances (within the limits of one tax-free citizen's income per month per capita), own food products, and working of farming plots held by large families, war and labor veterans, rehabilitated citizens,2 labor invalids, born cripples, solitary elders, victims of the Chernobyl disaster, grade schools, children's daycare centers, boarding schools, and medical institutions;
( Paragraph 2 of Sub-item 5.2.4 of Item 5.2 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
5.2.5. Free transfer of devices, equipment, materials, other than those excisable, to research institutions and organizations, higher educational establishments of III-IV accreditation levels entered in the State Register of Scientific Organizations entitled to the state support;
( The Paragraph added to Sub-item 5.2.5 of Item 5.2 of Article 5 according to Law of Ukraine #285-XIV of December 1, 1998; changed and amended according to Laws of Ukraine #2505-IV of March 25, 2005, #463-V of December 14, 2006 )( Sub-item 5.2.6 of Item 5.2 of Article 5 deleted according to Law of Ukraine #3073-III of March 07, 2002 )
5.3. Operations involving the delivery of products (work, services) for the purposes of covering own needs of diplomatic missions, consular offices of foreign states and representative offices of international organisations in Ukraine, as well as for the utilisation by the diplomatic personnel of such diplomatic missions and their family members residing together with diplomatic officers shall be exempt from taxation. The procedure of the exemption and the list of operations subject to the exemption shall be specified by the Cabinet of Ministers of Ukraine on a reciprocal basis for each individual country.
( Sub-item 5.4 of item 5.1 of Article 5 has been suspended for the year 2004 according to Law of Ukraine #1344-IV of November 27, 2003 )
5.4. Transactions of the import of the sea fishery products (fish, mammals, mussels, crustaceans, aquatic plants, etc. cooled, salted, frozen, preserved, ground or otherwise processed) produced (caught, manufactured) by vessels registered in the State Ship Register of Ukraine or the Ship Logbook of Ukraine before the moment of the treatment or processing thereof in the customs territory of Ukraine shall be exempted from taxation. Taxations of the subsequent supply of the said commodities by any parties shall be taxed according to the generally applicable procedure.
( Item 5.4 of Article 5 in the wording of Law #794/97-VR of December 30, 1997; changed and amended according to Laws of Ukraine #2505-IV of March 25, 2005, #1451-VI of June 4, 2009 )
5.5. The tax exemption under Article 5 of this Law shall not apply to transactions of:
the supply of commodities under the customs regime of the import or re-import (except for cases referred to in sub-items 5.1.7 and 5.1.24 of item 5.1, items 5.3 and 5.18 of this article);
( Paragraph 2 of Item 5.5 of Article 5 in the wording of Law of Ukraine #694-VI of December 18, 2008 - has been recognized as unconstitutional on the basis of Decision of the Constitutional Court of Ukraine #18-rp/2009 of July 14, 2009 )
the supply of excisable commodities (other than passenger cars for disabled people under sub-item 5.1.4 of item 5.1 and commodities under item 5.3 of this article).
(  Item  5.5 changed and amended according to Law of Ukraine #1460-III
of  February  17, 2000; in the wording of  Laws  of  Ukraine  #2505-IV of March 25, 2005, #463-V of December 14, 2006;
changed and amended according to Law of Ukraine #535-V of
December 22, 2006; in the wording of Law of Ukraine #521-VI of September 18, 2008 )
( Item 5.6 of Article 5 has been deleted according to Law of Ukraine #463-V of December 14, 2006 )
( Item 5.7 of Article 5 has been deleted according to Law of Ukraine #1523-III of March 2, 2000 )
( Item 5.8 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 5.9 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 5.10 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 5.11 of Article 5 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
5.13. The following transactions, which are carried out within the scope of the scientific and technological co-operation under the "Agreement between Ukraine and the European Community on the Scientific and Technological Co-operation" shall be exempt from the taxation:
- the free hand-over of commodities, work, services, which have been purchased at the expense of the European Community or organisations founded with the involvement of the European Community, on the customs territory of Ukraine by organisations founded with the involvement of the European Community to the Ukrainian counterparts;
- the importation (dispatch) of commodities into the customs territory of Ukraine, as well as the performance (provision) of the work and services (at the expense of funds provided by the European Community) for the utilisation or consumption on the customs territory of Ukraine by organisations founded with the involvement of the European Community and/or participants of the scientific and technological co-operation.
In case of the violation of the requirements related to the use of the said commodities, work and services for the designated purpose, the taxpayer must increase the tax liabilities as a result of the taxation period of such a violation by the amount of the value-added tax, which should have been paid at the time of the importation (dispatch) of commodities into the customs territory of Ukraine, the performance (provision) of the work and services on the said territory or charged on a general bases, and pay the fine accrued in accordance with the law.
( Item 5.13 added to Article 5 according to Law of Ukraine #1965-IV of July 01, 2004 )
5.14. The transactions of the importation into the customs territory of Ukraine of cultural valuables with UKT ZED (2371d-14) codes 9701 10 00 00, 9701 90 00 00, 9702 00 00 00, 9703 00 00 00, 9704 00 00 00, 9705 00 00 00, 9706 00 00 00 made fifty and more years ago, which are imported for the purposes of the subsequent hand-over thereof to museums, galleries, exhibition centres, archives, culture or education establishments, being in the state or community ownership, shall be exempt from taxation.
( Paragraph 1 of Item 5.14 of Article 5 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
The transactions of the subsequent sale of the said cultural valuables by legal entities and individuals shall be taxed in accordance with the legislation.
The exemption from taxation hereunder shall apply to transactions with cultural valuables, which are imported into Ukraine and entered into the State Register of Cultural Valuables of Ukraine.
The procedure of creating and keeping this register shall be approved by the Cabinet of Ministers of Ukraine.
( Item 5.14 added to Article 5 according to Law of Ukraine #2188-IV of November 18, 2004 )
5.15. Transactions of the supply of the passenger, their luggage, cargo and international correspondence services under the customs regime of the transit across the territory of Ukraine in accordance with provisions of Chapter 33 of the Customs Code of Ukraine shall be exempted from taxation with this tax.
( Item 5.15 added to Article 5 according to Law of Ukraine #2505-IV of March 25, 2005; in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
5.16. Transactions of the provision of services, which are included into the port fees in accordance with the legislation to the benefit of the entities carrying out the international transportation of passengers, their luggage, cargo and international correspondence from the point of crossing of the state border of Ukraine to the point (place) of the customs clearance in the territory of Ukraine on the arrival (receipt) thereof in the customs territory of Ukraine, as well as from the point (place) of the customs clearance in the territory of Ukraine to the checkpoint on the state border of Ukraine shall be exempted from taxation with this tax.
( Item 5.16 added to Article 5 according to Law of Ukraine #2642-IV of June 3, 2005;
in the wording of Law of Ukraine #1451-VI of June 4, 2009
 )
5.17 The transactions of the temporary importation of commodities listed in Article 206 of the Customs Code of Ukraine into the customs territory of Ukraine and the subsequent exportation from the customs territory of Ukraine (as well as the importation into the customs territory of Ukraine of objects earlier exported from the customs territory of Ukraine), and the aircraft imported into the customs territory of Ukraine under operational leasing contracts shall be exempt from taxation. The temporary importation time frame shall be recognised by Article 208 of the Customs Code of Ukraine. The Cabinet of Ministers of Ukraine shall have the right to extend the time frame prescribed by the Customs Code of Ukraine.
( Item 5.17 added to Article 5 according to Law of Ukraine #2771-IV of July 7, 2005 )
5.18. The following transactions of the importation into the customs territory of Ukraine shall be exempt from taxation:
5.18.1. the equipment operating on non-traditional and renewable energy sources, the energy saving equipment and materials, instrumentation, control and fuel/energy resource management facilities, the equipment and materials for the production of alternative types of fuel (hereinafter referred to as "commodities"), provided that these commodities are used by the taxable person for own production purposes, and if identical commodities with similar qualitative features are not manufactured in Ukraine. The list and the volumes of the said commodities shall be specified by the Cabinet of Ministers of Ukraine.
5.18.2. materials, equipment and components used to manufacture the equipment operating on non-traditional and renewable energy sources, produce alternative fuel types, energy saving equipment and materials, products whose operation ensures the savings and the sustainable consumption of fuel and energy resources, instrumentation, control and fuel/energy resource management facilities, provided that identical commodities with similar qualitative features are not manufactured in Ukraine. The list and the volumes of the relevant commodities shall be specified by the Cabinet of Ministers of Ukraine.
In case of the violation of the requirement to use the said commodities for designated purposes, a taxable person shall be obliged to increase the tax liability as a result of the taxation period of such a violation by the amount of the value-added tax, which should have been paid on the said transactions under normal circumstances, and pay the fine charged according to the legislation.
5.18.3. on a temporary basis, till 1 January 2011, the fixed assets, materials, equipment, facilities and components of products (other than excisable goods) by industrial companies setting up new production facilities with the implementation of energy conservation technologies, including the importation of such commodities as contributions to authorised funds of the said enterprises. The importation procedure, the list of the said enterprises and commodities shall be specified by the Cabinet of Ministers of Ukraine.
In case of the violation of requirements for the use of the said commodities for designated purposes, the taxable person shall be required to increase the tax liabilities as a result of the tax period of the said violation by the amount of the value-added tax that should have been paid on the importation of such commodities, and pay a fine charged on the amount of the said tax at the rate of 120 per cent of the discount rate of the National Bank of Ukraine that has been in force at the date of the increase in the tax liability and for the period from the date of the importation of such commodities till the date of the increase in tax liabilities.
( Item 5.18 of Article 5 has been amended by adding Sub-item 5.18.3 according to Law of Ukraine #694-VI of December 18, 2008 - has been recognized as unconstitutional on the basis of Decision of the Constitutional Court of Ukraine #18-rp/2009 of July 14, 2009 )
( Article  5  has  been  amended  by adding item 5.18 under Law #760-V of March 16, 2007 - the changes shall be  valid  for  three years  of  the  effective  date  of Law #760-V of March 16, 2007 )
5.19. Transactions of banks and other financial institutions involving the supply (sale, alienation otherwise) of the property provided by individuals and sole traders, and other entities not being payers of the tax as pledge (including mortgage), which has been collected, shall be exempted from taxation.
( Article  5  has  been  amended  by adding item 5.19 under Law of Ukraine #1617-VI of July 24, 2009 )
5.20. Transactions of banks involving the sale (transfer) or acquisition of liabilities under deposits shall be exempted from taxation.
( Article  5  has  been  amended  by adding item 5.20 under Law of Ukraine #1617-VI of July 24, 2009 )
Article 6. Tax Rates
6.1. Objects of taxation identified by Article 3 hereinbefore, except tax-exempt and zero-rated operations as per this Law, shall be subject to 20% rate.
6.1.1. The tax shall constitute 20% of the basis of assessment determined by Article 4 hereinbefore, and shall be added to the cost [price] of goods (works, services).
6.2. In case of the exportation of commodities and services ancillary to such exportation, the tax rate shall amount to 0 per cent of the taxation base.
( Paragraph 1 of Item 6.2 of Article 6 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
6.2.1. The zero rate shall also apply to transactions of:
( The Paragraph of Sub-item 6.2.1 of Item 6.2 of Article 6 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
- the delivery of services involving the work with the movable property earlier imported into the customs territory of Ukraine for the performance of such work and exported from the customs territory of Ukraine by the payer that has performed such work or by the non-resident recipient.
( The Paragraph added to Sub-item 6.2.1 of Item 6.2 of Article 6 according to Law of Ukraine #2771-IV of July 7, 2005 )
The work with the movable property shall include the work on the processing of commodities that may include the actual processing (treatment) of commodities - the installation, assembly, mounting and tuning resulting in the receipt of other commodities, including the performance of the tolling raw material processing work and the modernisation and repair of commodities involving the performance of a set of operations with the partial or complete restoration of the productive resource of the object (or components thereof) as defined by the regulatory technical documents, as a result of which the improvement of the condition of the said object is expected.
( The Paragraph added to Sub-item 6.2.1 of Item 6.2 of Article 6 according to Law of Ukraine #2771-IV of July 7, 2005 )
Refueling of or supplies to sea (ocean) ships that are:
- used for navigation, paid passenger or cargo deliveries, other commercial activity or fishing outside Ukraine's territorial waters;
- used for rescue operations in neutral or territorial waters of other countries;
- part of the Ukrainian Navy, dispatched outside Ukraine's territorial waters, including anchorage [in foreign ports];
Refueling of or supplies to aircraft that are:
- used on international lines for navigation purposes or paid passenger/cargo deliveries;
- part of Ukraine's Air Force, dispatched outside Ukraine's air frontiers, including temporary deployment (on foreign airfields);
- Refueling (topping up) of or supplies to spacecraft and satellites.
Commodities shall be considered exported by taxpayers when the fact of export is certified to by a duly executed customs bill.
Delivery of goods to be supplied by rail and motor transport in Ukraine's customs territory, regardless of its subordination or types of deliveries, shall be taxable at the rate stipulated by Clause 6.1 hereinbefore;
( Paragraph 12 of Sub-item 6.2.1 of Item 6.2 of Article 6 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )( Sub-item 6.2.2 of Item 6.2 of Article 6 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
6.2.3. goods (works, services) sold by retail enterprises located on Ukraine's territory, in customs-control zones (e.g., duty-free stores/shops), in keeping with procedures established by the Cabinet of Ministers of Ukraine.
Goods (works, services) available at duty-free stores at zero rate shall be delivered only to individuals about to cross Ukraine's customs border or to individuals using conveyances owned by residents and being outside Ukraine's customs' border. Control of observance of this Clause shall be exercised in keeping with procedures established by the Cabinet of Ministers of Ukraine. Breaches of any of the covenants contained in the foregoing shall entail responsibility stipulated by law.
Goods purchased at duty-free stores/shops, at VAT zero rate, when again brought to Ukraine's customs territory, shall be taxable in keeping with procedures prescribed for operations with importation (sending/transfer) of goods to Ukraine's customs territory;
6.2.4. the supply of the international passenger, luggage and cargo road transportation services, and the supply of the international correspondence with any type of transport at the section from the point (place) of their customs clearance to the point of destination (delivery) outside the customs border of Ukraine, between points located outside the customs border of Ukraine and from the point of their departure (acceptance for the transportation) outside the state border of Ukraine to the point (place) of their customs clearance in the territory of Ukraine;
the supply of international passenger, luggage and cargo transportation services with types of transport other than specified in paragraph one of this sub-item outside the customs border of Ukraine;
If the supply of the international passenger, luggage, cargo transportation services or international correspondence services takes place in the form of the sales of tickets and other travel documents, the entry into brokerage, agency, commission or other contracts (accounts) with intermediaries or attorneys, then the fees of such parties shall be taxed at a rate specified in sub-item 6.1.1 of item 6.1 of this article;
( Sub-item 6.2.4 of Item 6.2 of Article 6 in the wording of Law of Ukraine #1451-VI of June 4, 2009 )
( Sub-item 6.2.5 of Item 6.2 of Article 6 has been deleted according to Law of Ukraine #1274-XIV of December 3, 1999 - comes into force as from January 1, 2000 )
( Sub-item 6.2.6 of Item 6.2 of Article 6 has been deleted according to Law of Ukraine #639-VI of October 31, 2008 )
( Sub-item 6.2.7 of Item 6.2 of Article 6 has been deleted according to Law of Ukraine #1274-XIV of December 3, 1999 - comes into force as from January 1, 2000 )
6.2.8. the supply of commodities (other than excisable commodities) and services (other than gambling and lottery business, and services of the supply of excisable commodities received under commission (consignment), surety, entrustment, trust management contracts and other contracts governed by the civil law that authorise such an agent to supply commodities in the name and on behalf of the principal without conveying the ownership of the said commodities) that are manufactured directly by enterprises and organisations of public organisations of the disabled people, which are established by the public organisations of the disabled people and are owned by them, where the number of the disabled people having their major place of employment amounts to at least 50 per cent of the average registered staffing level during the preceding reporting period, and provided that the labour remuneration fund of such disabled people amounts during the reporting period to at least 25 per cent of the total labour remuneration expenses booked to the gross production expenses.
The term "direct" shall apply to the manufacture of commodities, as a result of which the amount of expenses related to processing (treatment, other forms of transformation) of raw materials, elements, components, other procured commodities used for manufacturing such commodities amounts to at least 8 per cent of the sales price of commodities so manufactured.
The said enterprises and organisations of public organisations of disabled people shall have the right to apply this privilege subject to the registration with the relevant tax agency to be done on the basis of submitting a positive decision of the interagency commission for activities of enterprises and organisations of public organisations of disabled people, and the relevant application of the taxpayer for such a privilege under the Law of Ukraine "On Fundamentals of the Social Protection of Disabled People in Ukraine".
In case of the violation of requirements of this sub-item by the taxpayer, the tax agency shall reverse its registration as an entity eligible for a tax break, and the tax liabilities of such a taxpayer shall be recalculated starting from the tax period, after which such violations were detected, in accordance with generally applicable taxation rules instituted hereby subject to the simultaneous application of relevant financial sanctions.
The tax reporting of such enterprises and organisations shall be submitted in accordance with the procedure prescribed by the legislation.
(  Sub-item 6.2.8 added to Item 6.2 of Article 6 according to  Law  of Ukraine  #208/98-VR of March 24, 1998; in  the  wording of  Laws  of Ukraine #1926-III of July 13, 2000,  #2505-IV  of March 25, 2005, #2960-IV of  October  6, 2005 )
( Sub-item 6.2.9 of Item 6.2 of Article 6 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
6.3. The zero rate of the tax shall not be applied to transactions of the supply of commodities (related services) outside the customs or state border of Ukraine, if the transaction of the supply of such commodities (related services) is not considered as an object of taxation under item 3.2 of Article 3 of this Law or is exempted from taxation with this tax under item 5 of Article 5 of this Law (other than sub-items 5.2.1, 5.1.7 and item 5.2 of Article 5 of this Law subject to the said zero rate of the tax), and for vehicles sent under the processing customs regime outside the customs border of Ukraine for the purposes of the repair thereof and returned to the customs territory of Ukraine for the further free circulation.
( Item 6.3 of Article 6 in the wording of Laws of Ukraine #2505-IV of March 25, 2005, #1451-VI of June 4, 2009 )
6.4. The following shall be the commodity supply place:
a) if the commodity is dispatched or transported by a seller or a buyer, or a third party - the place, where the commodity is actually located as of the moment of their being dispatched or transported;
in case of the supply of commodities, which are assembled or mounted with or without the commissioning work to be performed by the supplier or on the supplier's behalf - the place, where such commodities are assembled or mounted;
if such commodities cannot be delivered to the recipient other than in a disassembled or non-assembled condition for technical, process or other similar reasons - the place, where the commodity is located as of the time of their being dispatched or transported to the entity, to which the commodities are supplied;
b) if the commodities are not dispatched or transported - the place, where the commodity is actually located as of the moment of supply;
c) in case of the sale of the real estate - its location;
d) in case of the provision of services involving the supply of commodities for sea, air or railroad vessels/vehicles to the extent of the passenger or cargo transportation within the customs territory of Ukraine - the place of departure of such a vessel/vehicle.
The following terms shall be used for the application of this sub-item:
"the part of the passenger or cargo transportation with a vessel/vehicle within the customs territory of Ukraine" shall be understood as the portion of the transportation between the place of departure on the customs territory of Ukraine (the point of crossing the state border of Ukraine) and the place of arrival of such a vehicle on the customs territory of Ukraine (the point of crossing the state border of Ukraine) without any stops outside the boundaries of such a customs territory;
"place of vessel/vehicle departure" shall be understood as the first point of passenger boarding or cargo loading into such a vessel/vehicle;
"place of vessel/vehicle arrival at the customs territory of Ukraine" shall be understood as the last point on the customs territory of Ukraine for the embarkation (disembarkation) of passengers or loading (unloading, reloading) the cargo on the customs territory of Ukraine.
In case of the travel or transportation in both directions, the return travel shall be deemed to constitute a separate transportation for the taxation purposes;
e) if the commodities are sold via the Internet (global computer network) regardless of the place of registration of the domain name (site, electronic page or address) - the location of the seller or the place of his/her residence.
(  Item 6.4 added to Article 6 according to Law  of  Ukraine  #2505-IV of March 25, 2005 )
6.5. The following shall be the commodity delivery place:
a) subject to exceptions defined in sub-items "c", "e" to "f" of this sub-item - the place, where the provider of a service is registered as a payer of this tax; if such a service is provided by a non-resident - the location of its representative office or, lacking the latter - the location of the resident, which exercises agency (representative) actions on behalf of such a non-resident or, lacking such a resident - the place of the actual location of the buyer (recipient), who acts as a tax agent of such a non-resident in this case;
( Sub-item "b" of Item 6.5 of Article 6 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
c) in case of the provision of services by agents, intermediaries or other members of the real estate (realty) market (hereinafter referred to as "realtors") by other entities responsible for the preparation, co-ordination, supervision and performance of the real-estate construction and finishing work (including the services of architects and designers), other similar services related to the sale of construction of the real estate - the place, where such realty is or will be located;
d) the place, where the services are actually provided in the field of:
cultural, actor's, sports, scientific, educational, entertainment or similar activities, including the activities of organisers (producers) in such fields of activities, and the services related thereto;
the activities ancillary to the transportation, such as loading, unloading, reloading, warehousing treatment of commodities and other similar work (including insurance);
the real estate (realty) valuation;
( Paragraph 5 of Sub-item "d" of Item 6.5 of Article 6 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
e) the place of registration of the buyer or its permanent representative office or, lacking such a place of registration - the place of the permanent address or permanent residence, if the buyers, to which the services listed below are provided, live outside the customs territory of Ukraine and provide the services, which involve:
the transfer or provision of the copyright, patents, licences, as well as related rights, including trade marks;
the provision of advertising and other commodity (service) promotion services on the market (promotion);
the provision of services by consultants, engineers, lawyers, accountants, auditors, actuaries, and other services, as well as the data processing and provision of the information, for instance, with the utilisation of computer systems;
the undertaking to refrain from the exercise of certain activities in part or in full;
the provision of services by individuals having the hired labour relations with the supplier to the benefit of another entity;
the provision of agency services in the name and on behalf of another entity, if the provision of services listed in this item is provided for;
the provision of the movable property (including banking safes) on lease;
f) in case of the provision of personnel services for servicing the maritime, air and space facilities - the place of the provision of such services.
(  Item 6.5 added to Article 6 according to  Law  of  Ukraine #2505-IV of March 25, 2005 )
Article 7. Tax Accrual and Payment Procedures
( According to Laws of Ukraine #25/98-VR of January 15, 1998, #277-XIV of November 20, 1998 this Article 7 shall not apply to agricultural producers participating to the single (fixed) tax experiment on the territory of Hlobyno district, Poltava region insofar as all taxable transactions with the exception of transactions involving the sale of products manufactured by these agricultural producers. Transactions involving the sale of products manufactured by agricultural producers participating to the single (fixed) tax experiment on the territory of Hlobyno district, Poltava region shall not be subject to Item 7.7 hereinunder. )
7.1 Goods (works, services) shall be delivered at contractual prices plus the value added tax.
7.2. Tax voucher [bill].
7.2.1. The taxpayer shall be obliged to supply the buyer with a tax voucher that shall contain the following information as separate Clauses:
(a) ordinal number of the tax voucher;
(b) date of issue;
(c) full or abbreviated name specified in charter documents of the legal entity or name in full of the individual registered as VAT payer;
( Sub-item 'c' of Sub-item 7.2.1 of Item 7.2 of Article 7 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
(d) taxpayer's registration number (of both the seller and the buyer);
(e) location of the legal entity and/or taxation address of the individual registered as VAT payer;
(f) list (nomenclature) of goods (works, services) and their quantity (volume, amount);
(g) full or abbreviated name specified in charter documents of the recipient;
( Sub-item 'g' of Sub-item 7.2.1 of Item 7.2 of Article 7 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
(h) selling price less the tax;
(i) tax rate and corresponding sum in digits;
(j) total amount payable, tax considered.
7.2.2. When exempted in cases stipulated by Article 5 hereinbefore, the entry "Less VAT" shall be made in the tax voucher, along with a reference to an appropriate SubItem of Item 5.1 or [another] Item of Article 5 hereinbefore.
7.2.3. A tax voucher shall be done in two copies at the time of emergence of the seller's tax commitments. The original tax voucher shall be handed to the buyer, the copy shall remain with the seller of goods (works, services).
( Paragraph 1 of Sub-item 7.2.3 of Item 7.2 of Article 7 changed according to Law of Ukraine #644/97 of November 19, 1997 )
Separate tax vouchers shall be done with regard to taxable and exempted operations.
Each tax voucher shall be a tax-accounting and simultaneously a payment document.
Each tax voucher shall be written out as per full or partial delivery of goods (works, services).If part of the goods (works, services) does not have a segregated price, a list of partially delivered goods shall be provided in an annex to the tax voucher, in keeping with procedures established by the central body of the state tax service of Ukraine, and shall be taken into account when determining general tax commitments.
Taxpayers shall be under the obligation to preserve tax vouchers within time-limits prescribed by the laws on tax commitments and payment procedures.
7.2.4. The eligibility for the accrual of the tax and the compilation of tax invoices shall only be vested in individuals registered as taxable persons in accordance with the procedure envisaged by Article 9 hereof.
Business entities, which have migrated to the simplified taxation system that does not provide for the tax payment or provides for the accrual thereof at rates other than specified in item 6.1 of Article 6 hereof, shall waive the eligibility for the tax accrual, the tax credit and the compilation o the tax invoice, and the obtainment of the refund for the tax period of such migration. This rule shall also apply to enterprises relieved of the tax payment to the budget on the basis of the court decision.
( The Paragraph added to Sub-item 7.2.4 of Item 7.2 of Article 7 according to Law of Ukraine #2899-III of December 20, 2001; changed and amended according to Laws of Ukraine #2505-IV of March 25, 2005, #1403-VI of May 21, 2009 )
7.2.5. With regard to individuals not registered as business entities and who import (send) goods (articles) to Ukraine's customs territory in amounts taxable under the laws of Ukraine, filling a customs declaration shall be equal to submitting a tax voucher.
7.2.6. The tax invoice shall be issued by the taxpayer, which supplies the commodities (services, on request of the recipient thereof, and constitute the basis for the accrual of the tax credit. By way of exemption from this rule, a properly issued commodity cheque, another payment or settlement document, which confirms the acceptance of payment by the supplier from the recipient of such commodities (services) with the specification of the total amount of such payment, the tax amount, and the tax number of the supplier shall constitute the basis for the tax credit accrual in case of the supply of commodities (services) against cash or the payment with cards of payment systems, banking or personal cheques within the scope of the ultimate amount specified by the National Bank of Ukraine for the cash settlements.
In case of the refusal of the supplier of commodities (services) to issue the tax invoice or the violation by the said supplier of the procedure of filling out the same, the recipient of such commodities (services) shall have the right to attach a complaint on such a supplier to the tax declaration for the reporting tax period; the said complaint shall be the basis for the inclusion of the said tax amounts into the tax credit. The complaint shall be supported with copies of commodity cheques or other settlement documents, which confirm the fact of the tax payment as a result of the acquisition of such commodities (services).
The receipt of such a complaint shall constitute the basis for an off-schedule on-site inspection of such a supplier in order to ascertain the validity of the complaint and the completeness of the accrual of the liabilities related to this tax by such a supplier under the transaction governed by the civil law in question.
The following shall also be the grounds for the tax credit accrual without the obtainment of the tax invoice:
a transportation ticket, a hotel bill, or a bill issued to the taxpayer for communication services, other services, whose value is determined on the basis of meters that specify the total amount of payment, the tax amount, and the seller's tax number except for those made out under international standards;
( Paragraph 5 of Sub-item 7.2.6 of Item 7.2 of Article 7changed and amended according to Law of Ukraine #2642-IV of June 3, 2005 )
the cash cheques indicating the amount of the supplied commodities (services), the total amount of the accrued tax (with the indication of the fiscal number but without the indication of the tax number of the supplier). In this case, the total value of the supplied commodities (services) for the purposes of such accrual may not exceed UAH 200 per day (exclusive of the value-added tax).
(  Sub-item  7.2.6  of  Item  7.2 of Article  7  changed  and  amended
according  to  Law of Ukraine #644/97  of  November  19,
1997;  in the wording of Law of Ukraine #2505-IV of  March
25, 2005 )
7.2.7. In case of the importation of commodities into the customs territory of Ukraine, a cargo customs declaration executed in accordance with requirements of the legislation, which confirms the payment of the value-added tax, or a redeemed tax promissory note shall be the document certifying the eligibility for the tax credit.
( Sub-item 7.2.7 of  Item 7.2 of Article 7 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
7.2.8. Taxpayers are required to keep separate accounts for transactions of the supply and acquisition of commodities (services) liable to this tax, and those, which are not objects of taxation under Article 3 and exempt from taxation under Article 5 of this Law.
( Paragraph of Sub-item 7.2.8 of Item 7.2 of Article 7 has been deleted according to Law of Ukraine #2642-IV of June 3, 2005 )
The consolidated results of such accounting shall be presented in tax returns, whose form and completion procedure shall be determined by law. A taxpayer shall keep a register of the received and issued tax invoices in a documentary or electronic form at its discretion; the register shall contain the sequence number of the tax invoice, its issue (receipt) date, the total value, and the amount of the accrued tax, as well as the registration number of the taxpayer being the seller, which issued the tax invoice to such a taxpayer. In case of the availability of the original tax invoice, the failure to enter it into the said register shall not constitute the basis for the refusal to include the tax amount specified in such a tax invoice into the tax credit of such a taxpayer. The form and procedure of filling in registers of received and issued tax invoices shall be prescribed by the central tax authority.
( Paragraph 3 of Sub-item 7.2.8 of Item 7.2 of Article 7 changed and amended according to Law of Ukraine #2642-IV of June 3, 2005 )
During the documentary (scheduled or off-schedule on-site) inspection, the taxpayer must provide the tax inspector with the access to the tax invoice register and, if it is kept in electronic form, provide the electronic information carrier at own expense. At that, the electronic information carrier must be kept by the taxpayer during the limitation period prescribed by law. The taxpayer must use any of the operating computer systems most widespread in Ukraine of those suggested by the central tax agency at the taxpayer's discretion.
(  Sub-item 7.2.8 of Item 7.2 of Article 7 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
7.3. Date of emergence of tax commitments.
7.3.1. The date of emergence of tax commitments when selling goods (works, services) shall be the date during the taxation period in which any of the events occurred previously:
- the date of remittance of the sum received from the buyer (customer) on the taxpayer's bank account as payment for the goods (works, services) sold, and when selling goods (works, services) in return for cash, it shall be the date of the money being collected by the taxpayer's cash department - or in its absence the date of collection of cash by the bank serving the taxpayer;
- or the date of unloading the goods (with regard to works/services, the date of execution of a document attesting to the completion of works and rendition of services on the part of the taxpayer).
7.3.2. When selling goods or services using vending machines or other such equipment not requiring cash registers or a supervisor appointed by an individual [taxpayer], the date of emergence of tax commitments shall be the date of withdrawal of cash from these machines or other such equipment.
( Paragraph 1 of Sub-item 7.3.2 of Item 7.3 of Article 7 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
The rules of collection of this cash shall be established by the National Bank of Ukraine.
When goods (works, services) are delivered by vending machines using slugs, cards or other substitutes of the hryvnia, the date of gross revenue increment shall be the date of delivery of these slugs, cards or other substitutes of the hryvnia.
7.3.3. When delivering goods (works, services) using credit or debit cards, traveler's, commercial, personal or other checques, the date of increase in tax commitments shall be either the date of filling a tax voucher that attests to the transfer of goods (works, services) to the seller or the date of issue of the bill (purchase receipt), which of these events occurs earlier.
7.3.4. The date of the actual transfer of the financial lease (leasing) object for the use by the lessor (leasing recipient) shall be the date of the emergence of tax liabilities of the lessee (leasing provider) for the financial lease (leasing) operations.
( Sub-item 7.3.4 of Item 7.3 of Article 7 in the wording of Law of Ukraine #469-IV of January 16, 2003 )
7.3.5. The date of emergence of tax commitments when selling goods (works, services), with the costs charged to the budget, shall be the date of remittance to the taxpayer's current account or the date of receipt of an appropriate compensation in any other form, including reduction of the taxpayer's budget liability.
( Sub-item 7.3.5 of Item 7.3 of Article 7 changed according to Law of Ukraine 2921-III of January 10, 2002 )
7.3.6. The date of the beginning of tax commitments when importing goods shall be the date of submission of the customs declaration specifying the sum of the tax payable. The date of the beginning of tax commitments when importing works (services) shall be the date of write-off from the taxpayer's clearing account as payment for these works (services) or the date of execution of a document attesting to the completion of works (services) by a nonresident, whichever event occurs earlier.
( As for partial suspension of Sub-item 7.3.6 of Item 7.3 of Article 7 see also Law of Ukraine #2285-IV of December 23, 2004; changed and amended according to Law of Ukraine #2505-IV of March 25, 2005 )
7.3.7. The date of the beginning of tax commitments in the case of the executor of a contract that is qualified as long-term, pursuant to the Law of Ukraine "On Company Income Tax", shall be the date of gross revenue increment of the executor of the long-term contract.
7.3.8. The preliminary (advance) payment for the value of commodities (ancillary services), which are exported or imported, shall not modify the value of the tax credit or tax liabilities of a taxpayer being such an exporter or importer respectively.
( Sub-item 7.3.8 of Item 7.2 of Article 7 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
7.3.9. An entity, which has had taxable supplies over the last twelve calendar months, whose value does not exceed the amount defined in sub-item 2.3.1 of item 2.3 of Article 2 of this Law (exclusive of this tax), may choose the cash method of tax accounting.
If the said choice is made on the registration of such an entity as a payer of the said tax, the cash method shall start to be applied from the moment of such registration and may not be changed till the end of the year, during which such a registration occurred.
If the said choice is made during any period after the registration of such an entity as a payer of the said tax, the cash method shall start to be applied from the tax period, which follows the tax period when the choice was made, and may not be changed during the subsequent twelve monthly (four quarterly) tax periods.
The decision to choose the cash method shall be submitted to the tax agency together with an application for the tax registration or the tax return for the reporting (tax) period, during which the said choice was made.
During the period of the cash method application, the taxpayer shall indicate it in tax returns on this tax.
The taxpayer, which chose the cash method of accounting, may not apply it to:
import and export transactions;
transactions involving the supply of excisable commodities.
If commodities (services) remain unpaid in full (taking into account this tax) during three reporting periods, which follow the month of the supply thereof by a taxpayer, which chose the cash method (during the quarter, which follows the quarter of the provision thereof in case of taxpayers, which chose the quarterly tax period), and such a taxpayer has failed to initiate the procedure of the settlement of the contingent or bad debt in accordance with the legislation, then the amount of the accrued taxes must be included into the tax liabilities of such a taxpayer as a result of the next tax period.
The application of the cash method shall cease starting from the tax period, which follows the tax period, during which the taxpayer makes an independent decision to revert to the generally applicable rules of the ascertainment of the date of emergence of tax liabilities and tax credit (accrual method) or attains the volume of taxable transactions as defined by sub-item 2.3.1 of item 2.3 of Article 2 of this Law.
The taxpayer shall have the right to abandon the cash method on its own by sending a relevant statement to the tax agency in the place of the tax registration.

If the volumes of taxable transactions as a result of the reporting period exceed the amount specified in sub-item 2.3.1 of item 2.3 of Article 2 hereof, the taxpayer must abandon the cash method by sending a relevant statement to the tax agency, where it is registered as a payer of this tax, together with the submission of the tax return for such a reporting period. In this case, the taxpayer shall migrate to the generally applicable taxation rules starting from the next tax period. If the taxpayer fails to submit such a statement within the time frames specified by this sub-item, the tax agency must recalculate the amount of tax liabilities and tax credit of such a taxpayer starting from the tax period of the deadline for the submission of the taxpayer's statement of the cash method abandonment, and the taxpayer shall be deprived of the right to use the cash method for the subsequent 36 tax months.
Since the inception of the cash method application on grounds defined by this Law, the amounts of tax liabilities and tax credit, which came into existence before the cash method application, shall not be recalculated in connection with the inception of such an application.
In case of the abandonment of the cash method on any grounds and the migration to the generally applicable system of taxation with this tax:
the value of tax liabilities of the taxpayer shall be increased by an amount charged on the value of commodities (services) supplied by the taxpayer but not paid with money or other forms of compensation as of the date of the migration of such a taxpayer to the generally applicable taxation regime;
the value of tax credit of the taxpayer shall be increased by an amount charged on the value of commodities (services) received by the taxpayer but not paid with money or other forms of compensation as of the date of the migration of such a taxpayer to the generally applicable taxation regime.
(  Sub-item 7.3.9 added to Item 7.3 of Article 7 according to  Law  of
Ukraine #2505-IV of March 25, 2005 )
7.4. Tax credit.
7.4.1. The tax credit of the reporting period shall be determined on the basis of the contractual value of commodities (services) but not higher than the usual price level, if the contractual price for such commodities (services) differs from the usual price for the same commodities (services) by more than 20 per cent, and shall consist of tax amounts accrued (paid) by the taxpayer at the rate set by item 6.1 of Article 6 and Article 8-1 of this Law during such a reporting period in connection with:
( Paragraph 1 of Sub-item 7.4.1 of Item 7.4 of Article 7 in the wording of Law of Ukraine #398-V of November 30, 2006 )
the acquisition or manufacture of commodities (for instance, during the importation thereof) and services for the purposes of their subsequent utilisation in taxable transactions within the scope of business activities of the taxpayer;
the acquisition (construction, erection) of fixed assets (fixed assets, including other non-working tangible assets and non-completed capital investments into non-working capital assets), for instance, during the importation thereof, for the purposes of their subsequent utilisation in the manufacture and/or supply of commodities (services) for taxable transactions within the scope of business activities of the taxpayer.
The right to accrue the tax credit shall come into existence regardless of the fact, whether such commodities (services) and fixed assets have started to be utilised in taxable transactions within the scope of business activities of the taxpayer during the reporting tax period, and regardless of the taxpayer's performance of taxable transactions during such a reporting tax period.
If such commodities (services) start afterwards to be used in transactions, which are not the object of taxation under Article 3 hereof, or are exempt from taxation under Article 5 hereof, or if fixed assets are recategorised as non-production assets, then, for the taxation purposes, such commodities (services) and fixed assets shall be deemed to have been sold at their usual price during the tax period of the commencement of such utilisation or recategorisation, but not lower than the price of their acquisition (manufacture, construction, erection).
(  Sub-item  7.4.1  of  Item  7.4 of Article  7  changed  and  amended
according to Law of Ukraine #977-XIV of July 15,  1999;  in
the wording of Law of Ukraine #2505-IV of March 25, 2005 )
7.4.2. If the taxpayer acquires (manufactures) commodities (services) and fixed assets intended to be used in transactions, which are not the object of taxation under Article 3 hereof or are exempt from taxation under Article 5 and item 11.44 of Article 11 hereof, then the tax amounts paid in connection with such acquisition (manufacture) shall not be included into the tax credit of such a payer.
( Paragraph 1 of Sub-item 7.4.2 of Item 7.4 of Article 7 changed and amended according to Law of Ukraine #107-VI of December 28, 2007; in the wording of Law of Ukraine #309-VI of June 3, 2008 )
The tax amount paid by the taxpayer while purchasing a passenger car (except for a taxi cab) to be included into the fixed assets shall not be included into the tax credit and shall be included into the gross expenses.
( Paragraph 3 of Sub-item 7.4.2 of Item 7.4 of Article 7 has been deleted according to Law of Ukraine #2771-IV of July 7, 2005 )
(  Sub-item 7.4.2 of Item 7.4 of Article 7 in the wording  of  Law  of
Ukraine #2505-IV of March 25, 2005 )
7.4.3. When part of the goods (works, services) made and/or purchased is used in taxable operations and the other part is not, the sum of the tax credit shall include that part of the tax paid (accrued) on their manufacture or purchase which corresponds to the part of the goods (works, services) used in taxable operations over the accounting period.
7.4.4. If the taxpayer acquires (manufactures) tangible and intangible assets (services) not intended to be used in business activities of such a taxpayer, then the tax amounts paid in connection with such acquisition (manufacture) shall not be included into the tax credit.
( Sub-item 7.4.4 of Item 7.4 of Article 7 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
7.4.5. Amounts of the tax paid (accrued) in connection with the acquisition of commodities (services) not confirmed with tax invoices or customs declarations (other similar documents in accordance with sub-item 7.2.6 of this item) shall not be included into the tax credit.
( Paragraph 1 of Sub-item 7.4.5 of Item 7.4 of Article 7 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )
If at the moment of check-up performed by the taxation body the specified documents are not available to attest to tax sums included in tax credit, a tax payer shall be obliged to pay due financial sanctions on the tax credit sum that is not attested to by the documents specified herein.
(  Sub-item 7.4.5 of Item 7.4 of Article 7 in the wording  of  Law  of
Ukraine #550/97 of September 26, 1997 )
7.5. The date of the beginning of the taxpayer's right to tax credit shall be:
7.5.1. The date of whichever event occurs earlier:
- the date of write-off from the taxpayer's account of the sum of the tax on account of payment for the goods (works, services), or - in the case of payment made using credit/debit cards or commercial cheques - the date of issue of an appropriate bill (proof of purchase);
- or the date of receipt of a tax voucher attesting to the taxpayer's having purchased goods (works, services);
7.5.2 For transactions of the importation of commodities (ancillary services) and the supply of services by a non-resident on the customs territory of Ukraine - the date of payment of the tax under tax liabilities in accordance with sub-item 7.3.6 of this article;
( Sub-item 7.5.2 of Item 7.5 of Article 7 changed and amended according to Law of Ukraine #2505-IV of March 25, 2005; in the wording of Law of Ukraine #2771-IV of July 7, 2005 )
7.5.3. The date of the actual obtainment of the financial leasing object by the lessee shall be the date of the emergence of the entitlement of the lessor (leasing recipient) to the increase in the tax credit for the financial lease (leasing) operations.
( Sub-item 7.5.3 of Item 7.5 of Article 7 in the wording of Law of Ukraine #469-IV of January 16, 2003 )
7.5.4. The date of implementation of the customer's right to tax credit on contracts recognized as long-term under the Law of Ukraine On Company Income Tax shall be the date of gross revenue increment of the customer of the long-term contract.
7.6. With regard to goods (works, services) that are purchased under the control of accounting instruments [machines/devices], the fact of receipt (delivery) of these goods (works, services) shall be attested to by accounting data.
7.7. Procedure of ascertainment of the tax amount to be paid (transferred) to the State Budget of Ukraine or to be refunded from the State Budget of Ukraine (budget refund) and time frames for settlements.
7.7.1. The tax amount to be paid (transferred) to the budget or refunded from the budget shall be defined as the difference between the tax liability of the reporting tax period and the tax credit of such a reporting tax period.
In case of the positive value of the amount calculated under sub-item 7.7.1 of this item, the said amount shall be paid (transferred) to the budget within time frames prescribed by law for the relevant tax period.
In case of the negative value of the amount calculated under sub-item 7.7.1 of this item, the said amount shall net off the tax debt related to the said tax, which came into existence during the previous tax periods (including the tax debt payable by instalments or deferred in accordance with the law); lacking such debt, it shall be included into the tax credit of the next tax period.
7.7.2. If the amount calculated under sub-item 7.7.1 of this item is negative during the next tax period, then:
a) the portion of such a negative value, which equals the amount of tax actually paid by the recipient of commodities (services) during the previous tax period to suppliers of such commodities (services) shall be subject to the budget refund;
( Sub-item "a" of Sub-item 7.7.2 of Item 7.7 of Article 7 changed and amended according to Law of Ukraine #107-VI of December 28, 2007; in the wording of Law of Ukraine #309-VI of June 3, 2008 )
b) the balance of the negative value remaining after the budget refund shall be included into the tax credit of the next tax period.
7.7.3. The taxpayer may make an independent decision to net off the full amount of the budget refund payable to the taxpayer against the tax liabilities related to this tax in the next tax periods. The said decision shall be specified by the taxpayer in the tax return to be submitted as a result of the reporting period, during which the taxpayer becomes eligible for submitting an application for the budget refund under provisions of this article. Upon such a decision, the said amount shall be disregarded during the calculation of amounts of the budget refund of the next tax periods.
7.7.4. The taxpayer, which is eligible for the budget refund and decided to claim the full amount of the budget refund, shall submit a tax return to the relevant tax agency and an application for the repayment of such a full amount of the budget refund that has to be indicated in the tax return. In this case, the taxpayer shall submit a copy of the tax return to an agency of the State Treasury of Ukraine with a tax return acceptance mark made thereon by the tax agency within five days of the submission of the tax return to the tax agency, for the purposes of keeping the register of tax returns broken down by payers.
The return shall be supported with a calculation of the budget refund amount, copies of redeemed tax promissory notes (tax notes), if any, and originals of the fifth main sheets (declarant's copies) of the cargo customs declarations, in case of the availability of export transactions.
The form of the application for the refund and the form of the calculation of the amount of the budget refund shall be determined in accordance with the procedure instituted by the central tax agency.
7.7.5. Within 30 days following the day of receipt of the tax return, the tax agency shall carry out a documentary off-site validation of the data claimed therein. Subject to the availability of sufficient grounds to believe that the amount of the budget refund has been calculated with the violation of provisions of the tax legislation, the tax agency shall have the right to undertake an off-schedule on-site (documentary) inspection of the payer during the same period, in order to determine the veracity of the accrual of such a budget refund.
The tax agency must within five days after the inspection provide the state treasury agency with an opinion indicating the amount to be refunded from the budget.
( Paragraph 2 of Sub-item 7.7.5 of Item 7.7 of Article 7 in the wording of Law of Ukraine #2642-IV of June 3, 2005 )
7.7.6. On the basis of the received opinion of the relevant tax agency, the state treasury agency provides the budget refund amount indicated therein to the taxpayer by transferring the funds from the budget account to the current account of the taxpayer in the servicing bank within five operations days after the receipt of the opinion of the tax agency.
7.7.7. If the tax agency has ascertained the non-conformity of the budget refund amount with the amount claimed in the tax return as a result of the documentary off-site or off-schedule on-site (documentary) inspection, then such a tax agency shall:
a) send a tax notice to the taxpayer in case of the understatement of the budget refund amount claimed by the taxpayer in comparison with the amount determined by the tax agency as a result of such inspections; the said notice shall indicate the value of such an understatement and the grounds for the calculation thereof. In this case, it shall be deemed that the taxpayer has voluntarily refused to claim such an understatement amount as budget refund and nets it off under sub-item 7.7.3 of this item against the tax liabilities related to this tax in the next reporting periods;
b) in case of the overstatement of the budget refund amount claimed by the taxpayer over the amount determined by the tax agency as a result of such inspections, the tax agency shall send a tax notice indicating the amount of such an overstatement to the taxpayer and specify the grounds for the calculation thereof;
c) in case of the ascertainment of a fact as a result of the above inspections that the taxpayer is not eligible for the budget refund, the tax agency shall send the taxpayer a tax notice stating the grounds for the refusal of the budget refund.
7.7.8. If, as a result of the validation of tax amounts, whose reimbursement is claimed, the tax payer or the tax agency initiates the administrative dispute procedure, the tax agency must notify thereof the state treasury agency not later than on the next working day after the receipt of the relevant notice from the payer or the court judgement to initiate the proceedings. The state treasury agency shall suspend the reimbursement procedure to the extent of the disputed amount until the final decision is made as a result of the administrative or judicial dispute.
After the completion of the administrative or judicial dispute procedure, the tax agency must provide the state treasury agency with an opinion indicating the amount of the tax reimbursable from the budget within five working days following the day of receipt of the relevant decision.
(  Sub-item 7.7.8 of Item 7.7 of Article 7 in the wording  of  Law  of
Ukraine #2771-IV of July 7, 2005 )
7.7.9. If a taxpayer exports from the customs territory of Ukraine the commodities (ancillary services) received from another taxpayer on a commission, consignment, entrustment or other basis, which does not provide for the transfer of the ownership of such commodities (ancillary services) from such another taxpayer to the exporter, the eligibility for the budget refund shall be enjoyed by such another taxpayer. At that, the commission received by the taxpayer being an exporter from such another taxpayer shall be included into the base of taxation with this tax at a rate specified in paragraph one of item 6.1 of Article 6 hereof, and shall not be included into the customs value of commodities (ancillary services) being exported.
( Sub-item 7.7.9 of Item 7.7 of Article 7 changed and amended according to Law of Ukraine #2642-IV of June 3, 2005 )
7.7.10. The general revenues of the State Budget of Ukraine shall be the source for the payment of the budget refund (including the budget debt). It shall be prohibited to make the disbursement of the budget refund conditional or limit the same on the basis of the availability or the lack of revenues received from the tax in question in specific regions of Ukraine.
7.7.11. The following entities shall not be eligible for the budget refund:
a) an entity, which:
has been registered as a payer of this tax for less than 12 calendar months before the month, as a result of which an application for the refund is being (except for the accrual of the tax credit as a result of the acquisition or construction (building) of fixed assets on the basis of a decision of the Cabinet of Ministers of Ukraine);
( Paragraph 2 of Sub-item "a" of Sub-item 7.7.11 of Item 7.7 of Article 7 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
has had volumes of taxable transactions over the last 12 calendar months being lower than the claimed budget refund amount (except for the accrual of the tax credit as a result of the acquisition or construction (building) of fixed assets);
( The Paragraph of Sub-item "a" of Sub-item 7.7.11 of Item 7.7 of Article 7 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
has not exercised business activities for the last twelve calendar months;
     (  Sub-item   "b"  of  7.7.11 of Item 7.7 of Article 7  has  been
deleted according to  Law of Ukraine  #2642-IV of June  3,
2005 )
b) a payer of the universal tax under the simplified taxation, accounting and reporting system that provides for the payment of this tax in a manner different from the one prescribed by this Law or the exemption from such payment.
( Sub-item "b" added to Sub-item 7.7.11 of Item 7.7 of Article 7 according to Law of Ukraine #2771-IV of July 7, 2005 )(  Item  7.7  of Article 7 changed and amended according  to  Laws  ofUkraine #169/98-VR of March 4, 1998, #934-XIVof  July 14, 1999,  #1523-III of March 2, 2000,  #2181-III  of  December  21, 2000,  #1766-IV of June 15,2004; in the  wording of Law of Ukraine #2505-IV of  March25, 2005 )
7.8. Tax periods.
7.8.1. A tax period shall be one calendar month or, in cases specifically indicated hereby, a calendar quarter, taking into account the following:
if an entity is registered as a taxpayer from the day other than the first day of the calendar month, the period starting from the date of such registration and ending on the last day of the first full calendar month shall be the first tax period;
if the tax registration of an entity is annulled on a day other than the last day of the calendar month, then the period starting from the first day of such a month and ending on the date of such an annulment shall be the last tax period.
7.8.2. A taxpayer, whose taxable transaction volume has not exceeded the amount specified in sub-item 2.3.1 of item 2.3 of Article 2 hereof over the preceding twelve monthly reporting periods, may choose a quarterly tax period. The statement of choice of the quarterly tax period shall be submitted to the tax agency together with the return for the last tax period of the calendar year. At that, the quarterly tax period shall start to be applied from the first tax period of the next calendar year.
If the volume of taxable transactions of the taxpayer exceeds the amount specified in sub-item 2.3.1 of item 2.3 of Article 2 of this Law during any period starting from the commencement of the application of the quarterly tax period, then the taxpayer must migrate to the monthly tax period on its own starting from the month of such an excess; the said migration shall be mentioned in the relevant tax return as a result of such a month.
(  Item  7.8 of Article 7 in the wording of Law  of  Ukraine  #2505-IV of March 25, 2005 )
     ( Item  7.9  of Article 7 has been deleted according  to  Law  of
Ukraine #2505-IV of March 25, 2005 )
     ( Article 8 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
Article 8. Special Regime of Taxation of Tourist Services
8.1. In case of the supply of a tourist product or tourist services rendered outside the customs territory of Ukraine the taxation base shall be the fee of a tour operator, namely, the difference between the value of the tourist product, tourist services supplied thereby and the value of expenses incurred by such a tour operator as a result of the acquisition (development) of such a tourist product, tourist services.
8.2. The value of expenses incurred by a tour operator shall be determined as a total amount of expenses incurred when carrying out a natural or legal person's orders under relevant contracts made in keeping with Ukraine's laws.
8.3. The supply by a tour operator of a tourist product, tourist services rendered on the customs territory of Ukraine shall be taxable on a common basis as prescribed herein.
8.4. The commission accrued (paid) to a travel agent by a tour operator, other service providers including the funds received by the travel agent from the consumer of the tourist product, tourist services shall be the taxation base for transactions of travel agents.
8.5. The tourist product, tourist services with the place of delivery on the customs territory of Ukraine and outside the customs territory of Ukraine may be supplied only by a resident being in possession of the relevant licence and meeting the requirements of item 2.3 of Article 2 hereof.
8.6. The cost of delivery of the tourist product, tourist services by both the tour operator and the travel agent shall be used to calculate the ultimate amount in accordance with sub-item 2.3.1 of item 2.3 of Article 2 hereof.
(  Article  8 added to the Law according to Law  of  Ukraine  #2642-IV of June 3, 2005 )
Article 8-1. Special Regime of Taxation of Activities in the Field of Agriculture, Forestry and Fishery
8-1.1. A resident who exercises business activities in the field of the agriculture, forestry and fishery, and meets the criteria specified in item 8-1.6 of this article (hereinafter referred to as "agricultural enterprise") may opt for a special tax regime.
8-1.2. Under the special tax regime, the amount of the value- added tax accrued by the agricultural enterprise on the value of agricultural commodities (services) supplied thereby shall not be paid to the budget and shall fully remain at the disposal of such an agricultural enterprise as the refund for the tax amount paid (accrued) to the supplier on the value of the production inputs or, in case of a positive balance of such a tax amount, for other production- related purposes.
8-1.3. If the amount of the value-added tax paid (accrued) by an agricultural enterprise to a supplier on the value of the production inputs is higher than the tax amount accrued on transactions of the supply of agricultural commodities (services), then the difference between such amounts shall not be subject to the budget refund.
8-1.4. In case of the exportation of agricultural commodities (ancillary services) under the export customs regime, the agricultural enterprise that has produced such commodities (services) shall be entitled to the budget refund of the value-added tax paid (accrued) to suppliers of commodities (services) whose value is included into the production inputs. This refund shall be provided in accordance with the generally applicable procedure.
8-1.5. A taxable person procuring agricultural commodities (services) from an agricultural farm that has opted for the special tax regime shall have the right to increase the tax credit by the amount of the paid (accrued) tax in accordance with the generally applicable procedure.
8-1.6. An enterprise shall be deemed to be an agricultural enterprise, if its main business is to supply agricultural commodities (services) produced (provided) thereby at own or leased production facilities, as well as on a tolling basis, provided that the percentage of the value of agricultural commodities (services) is equivalent to at least 75 per cent of the value of all commodities (services) supplied in aggregate over the previous twelve consecutive tax reporting period in total.
( Paragraph 1 of Item 8-1.6 of Article 8-1 changed and amended according to Law of Ukraine #1403-VI of May 21, 2009 )
This provision shall be applied subject to the following:
a) the relevant percentage of agricultural commodities (services) shall be calculated as a result of each tax reporting period in case of newly established agricultural enterprises registered as a business entity engaging into business for fewer than twelve calendar months;
b) the taxable transactions of the supply of capital assets that have been treated as fixed assets of an agricultural enterprise shall for fewer than twelve consecutive tax reporting periods in aggregate shall not be included into the main business of the agricultural enterprise for the purposes of the calculation of the said percentage, if such supplies have not been permanent and have not amounted to a separate business activity.
8-1.7. Commodities listed in groups 1 to 24 of UKT ZED (2371a-14) under the Law of Ukraine "On Customs Tariff of Ukraine"  shall be deemed to be agricultural commodities, provided that such commodities are grown, fattened, caught or collected (gathered) directly by the taxable person being subject to the special tax regime (except for the acquisition of such commodities from other parties), as well as the products of the treatment (processing) of such commodities supplied by the said taxable person being the manufacturer thereof.
8-1.8. Provisions of this article shall not apply to manufacturers of excisable commodities, other than primary winemaking enterprises that supply wine materials (UKT ZED codes 2204 29 - 2204 30) (2371a-14).
8-1.9. The agricultural enterprise shall issue a tax slip to the buyer in accordance with the procedure prescribed by item 7.2 of Article 7 of this Law.
8-1.10. In order to obtain a certificate of registration as a party subject to the special tax regime, the agricultural enterprise shall be registered with the appropriate tax agency according to rules and within time frames specified in Article 9 of this Law for the registration of payers of the value-added tax.
A list of lines of business of the agricultural enterprise must be provided in the certificate of registration of the agricultural enterprise as a party subject to the special tax regime in addition to the information envisaged for the certificate of the registration of a value-added tax payer.
8-1.11. If a party subject to the special tax regime has supplied non-agricultural commodities (services) whose aggregate percentage exceeds 25 per cent of the value of all supplied commodities (services) over the prior twelve consecutive tax reporting periods, then:
a) such an enterprise shall not be subject to the special tax regime instituted with this article. The said enterprise shall be required to determine the tax liability related to the tax in question as a result of the reporting period of such an excess, and pay tax to the budget in accordance with the generally applicable procedure;
b) the tax agency shall remove such an enterprise from the register of the parties subject to the special tax regime, and may re- enter the same into the register on expiry of the next twelve consecutive tax reporting periods subject to the existence of grounds defined in this article;
c) the said enterprise shall be deemed to be a payer of the tax in question on a generally applicable basis from the first day of the month of such an exceedence.
In case of the introduction of the legal regime of the extraordinary environmental situation, the state of emergence or the martial law in accordance with the established procedure, the application of provisions of this item shall commence after the expiry of the validity period of the relevant legal regime.
If the parties subject to the special tax regime are unable to cover losses that came into existence as a result of the validity of the legal regime of the extraordinary environmental situation, the state of emergence or the martial law within time frames specified in the prior paragraph, then, subject to a petition submitted by at least two such entities, the Cabinet of Ministers of Ukraine shall have the right to extend the application of the special tax regime for all agricultural enterprises located in zones of the extraordinary environmental situation, the state of emergence or the martial law without requiring compliance with the percentage specified in this item. This rule shall not be applied, if the risks of the loss of commodities (inventories) have been properly insured.
8-1.12. The certificate of the registration of the agricultural enterprise as a party subject to the special tax regime shall be annulled, if:
a) the agricultural enterprise applies for the withdrawal thereof from the registration as a party subject to the special tax regime and/or the registration thereof as a payer of this tax on a generally applicable basis;
b) the agricultural enterprise becomes liable to the registration as the payer of this tax on a generally applicable basis;
c) the agricultural enterprise is terminated by means of the liquidation or reorganisation;
d) the agricultural enterprise has failed to submit tax reports on the tax in question for the last twelve consecutive tax reporting periods.
In such cases, the agricultural enterprise shall be required to return the certificate of registration as a party subject to the special tax regime to the tax agency.
8-1.13. An agricultural enterprise being a party subject to the special tax regime shall submit a tax return within time frames and in accordance with the procedure prescribed for other payers of the tax. The form of the tax return submitted by the agricultural enterprise being a party to the special tax regime shall be approved in accordance with the procedure prescribed by sub-item "m" of sub-item 4.4.2 of item 4.4. of Article 4 of the Law of Ukraine "On Procedure of the Repayment of Liabilities of Taxpayers to Budgets and State Special-Purpose Funds" .
8-1.14. The agricultural enterprise being a party to the special tax regime shall apply tax rates set with item 6.1 of Article 6 of this Law.
8-1.15. The following terms shall be used for the purposes of this article:
8-1.15.1. production inputs:
a) commodities (services) which are procured by the agricultural enterprise for the utilisation for the production of agricultural products, as well as the fixed assets procured (built) for the purposes of the utilisation for the production of agricultural products.
If commodities (services) and fixed assets that have been produced and/or acquired are used by the agricultural enterprise in part for the production of agricultural commodities (services) and in part for the production of other commodities (services), then the amount of the paid (accrued) tax credit shall be allocated on the basis of the percentage of the utilisation of such commodities 9services) and fixed assets in the agricultural-production transactions and other transactions respectively;
b) services ancillary to the supply of the agricultural commodity, which is grown, fattened, caught or collected (gathered) directly by the payer of the tax:
the sowing and the planting of plants, the harvesting, the harvest briquetting or warehousing, the performance of other fieldwork, including the application of fertilisers and plant protection substances;
the packaging and the preparation for sale, including the drying, the cleaning, the grinding, the disinfection and the ensilage of the agricultural products;
the storage of agricultural products;
the growing, the breeding, the fattening and the killing of farm animals, the application of animal protection substances, the performance of the anti-epizootic measures;
the provision of services to other agricultural enterprises related to the utilisation of the agricultural equipment, other than the provision thereof on financial lease (leasing) terms;
the provision of services ancillary to the agricultural activities, such as those related to the taxation, accounting and reporting, and the organisation of the intra-company production management;
the destruction of weeds and pests, the treatment of plantations and agricultural areas with plant protection means, as well as the utilisation of animal protection means;
the operation of the irrigation and drainage systems for the sowing areas and agricultural grounds;
the meet dressing to the market standard;
8-1.15.2. activities in the field of the agriculture:
a) the production of crops, as well as the growing of the fruit and vegetables, flowers and decorative plants (in open or closed soil), mushrooms, seeds, herbs, saplings and seaweeds, as well as the treatment, the processing and/or the conservation thereof;
( Sub-item "a" of Sub-item 8-1.15.2 of Item 8-1.15 of Article 8-1 changed and amended according to Law of Ukraine #1403-VI of May 21, 2009 )
b) the production of animal products, such as farm animals, poultry, rabbits, apicultural products, the breeding of the silkworm moths, snakes and other reptiles or molluscs, and other land mammals, invertebrates and insects; as well as the treatment, the processing and/or preservation;
8-1.15.3. activities in the field of the forestry:
a) the forestation, the growing and the maintenance of trees or shrubs, or the felling of trees and/or shrubs;
b) the gathering of wild mushrooms and berries, other wild plants, their treatment and preservation;
8-1.15.4. activities in the field of fishery:
a) the breeding and the catching of freshwater (estuary) fish or other freshwater (estuary) products;
b) the breeding and the catching of the sea or ocean fish and invertebrates;
c) the breeding and the catching of mussels, oysters, crustaceans, frogs, wild seaweeds;
d) the treatment and/or the preservation of fish or other freshwater or sea invertebrates, mussels, oysters, crustaceans, frogs, wild seaweed;
8-1.15.5. the production of products on a tolling basis from raw materials grown, fed, caught or gathered (procured) directly by the taxable person: this shall be deemed to be a transaction of the supply of agricultural raw materials by the principal (owner) being the special-regime entity to a manufacturer (processor) and the acceptance thereof by the latter for the processing (treatment, enrichment or utilisation) into finished products on the production facilities of the manufacturer (processor) in question at an appropriate fee without the obtainment of the ownership to products in question;
( Item 8-1.15 of Article 8-1 has been amended by adding Sub-item 8-1.15.5 according to Law of Ukraine #1403-VI of May 21, 2009 )
8-1.15.6. the treatment or the processing of products obtained as a result of activities of the payer of the tax in the field of the agriculture, fishery and forestry shall be deemed to be the activities in the field of the agriculture, forestry and fishery, provided that such products are grown, fattened, caught or collected (gathered) directly by the tax payer (other than the purchase from other parties);
8-1.15.7. On the basis of this item, the Cabinet of Ministers of Ukraine shall specify and publish a full list of activities subject to provisions of this article in accordance with the National Classifier of Ukraine "Classification of Economic Activities" approved in accordance with the Law of Ukraine "On Standardisation".
( Article 8-1 added to the Law according to Law of Ukraine #1878-IV of June 24, 2004; #639-VI of October 31, 2008 )
( For the  operation  of  Article 8-1, see Laws of Ukraine #2287-IV of December 23, 2004, #2987-IV of October 18, 2005, #273-V of
October  19, 2006, #107-VI of  December  28, 2007, #309-VI of June 3, 2008 )
Article 8-2. Special Regime of Taxation of Activities Involving Works of Art, Collectibles or Antiques
8-2.1. In cases covered with this article, the transactions of the supply of works of art, collectibles or antiques shall be subject to taxation under provisions of this article and not be subject to taxation under the generally applicable procedure instituted with this Law.
8-2.2. The terms shall be used with the following meanings for the purposes of this article:
a) "Works of art, collectibles or antiques" shall be understood as the commodities included into the codes 9701 to 9706 of UKT ZED (2371d-14);
b) "Dealer" shall be understood as a taxpayer that procures (acquires under other contracts governed by the civil law), for instance, by means of importing, the works of art, collectibles or antiques (hereinafter referred to as "cultural valuables") for the purposes of the subsequent re-sale thereof, regardless of the said taxpayer's acting in own name or on behalf of another party for a fee;
c) "Public auction sale organiser" shall be understood as a taxpayer offering commodities for the auction sale for the purposes of the delivery thereof to a highest bidder subject to the same payment conditions.
8-2.3. In case of transactions of the supply of cultural valuables by a dealer, the base of the taxation at the rate of 20 per cent shall be the dealer's margin equivalent to the difference between the price of the sale of such commodities and the price of the acquisition thereof (without the value-added tax charged on such a margin) calculated at usual prices.
In case of the sale of cultural valuables from public auctions, the taxation base at the rate of 20 per cent shall be the difference between the amount paid by the public auction sale organiser to the buyer of such cultural valuables and the amount paid (payable) to the party that has offered the commodity to the auction (without the value-added tax).
The taxation base in case of the importation of cultural valuables by a taxpayer into the customs territory of Ukraine shall be determined in accordance with provisions of item 4.3 of Article 4 of this Law.
8-2.4. Provisions of item 8-2.3 shall only be applied if a dealer procures the cultural valuables from:
a) a party not registered as the payer of the said tax;
b) a taxpayer, if the transaction of the supply of such cultural valuables thereby is exempt from taxation or is not taxable under Articles 3 or 5 of this Law;
c) a taxpayer, if the transaction of the supply of such cultural valuables thereby is subject to taxation in accordance with the procedure instituted with this article;
d) under the import customs regime.
8-2.5. The zero tax rate shall not be applied to the tax amount charged on the margin determined under item 8-2.3 of this article in case of the export of cultural valuables by the dealer.
8-2.6. A taxpayer procuring cultural valuables from a dealer shall not have the right:
a) to include the tax amount charged by the dealer in question on his margin into the tax credit;
b) to include the tax amount charged by the dealer in question on his margin into the calculation of the refund from the budget.
8-2.7. The dealer shall not have the right to include the following into the tax credit:
a) the value-added tax paid (charged) during the importation of cultural valuables;
b) the value-added tax paid (charged) by the dealer in question to the benefit of the taxpayer who is not a dealer within the meaning of sub-item "b" of item 8-2.2 of this article but supplies cultural valuables to the dealer in question.
8-2.8. If the dealer is a taxpayer on a generally applicable basis, then the tax accounting for his transactions with cultural valuables, including the tax accounting for the value-added tax charged on the margin shall be kept separate from the general tax accounting in accordance with the rules prescribed by the Ministry of Finance of Ukraine. The same shall apply to the compilation of the tax statements related to this tax.
8-2.9. A dealer selling cultural valuables in accordance with provisions of this article shall not have the right to specify the amount of the tax on the margin calculated under item 8-2.3 of this article paid (charged) by him in the tax waybills.
8-2.10. In case of the sale of cultural valuables from a public auction, the organiser thereof shall be considered equivalent to a dealer for the purposes of the taxation within the meaning of sub-item "b" of item 8-2.2 of this article.
The organiser must provide the buyer with a tax waybill indicating the price of the commodity sale from the auction, as well as the value of commissions and other payments related to the sale in question.
The tax liability of the organiser shall come into existence at the moment of the sale thereof from a public auction, and the transaction of the supply of cultural valuables shall be deemed completed.
(  The Law has been amended by adding Article 8-2 according to Law  of
Ukraine #535-V of December 22, 2006 )

Article 9. Registration of Entities as Payers of the Value-added Tax
9.1. The central tax agency shall maintain the register of taxpayers.
9.2. Any entity registered as the value-added tax payer shall be assigned an individual tax number to be used for the administration of the said tax.
9.3. Entities subject to definitions of item 2.3 of Article 2 hereof must register themselves as taxpayers in the tax agency in their location (place of residence). The form of the application for the registration shall be determined in accordance with the procedure specified by the central tax agency. The data from the register of taxpayers shall be published in accordance with the procedure specified by the central tax agency.
The individuals not being business entities, who import commodities (objects) into the customs territory of Ukraine in volumes liable to taxation under the customs legislation, shall pay the value-added tax at the time of crossing of the customs border of Ukraine by such commodities (objects) without their registration as payers of this tax.
9.4. If the entity not subject to item 2.3 of Article 2 hereof as a taxpayer considers it appropriate to voluntarily register itself as a taxpayer and if it meets the requirements of sub-item 2.2 of Article 2 of this Law, then the said registration shall take place on the basis of the entity's application.
If the volume of taxable transaction of the entity has exceeded the amount defined in sub-item 2.3.1 of item 2.3 of Article 2 hereof during the reporting tax period by not more than a factor of two, then such an entity must send an application for the registration to the tax agency within twenty calendar days following such a reporting tax period.
If an entity enters into one or several contracts governed by the civil law, whose implementation requires undertaking taxable transactions, whose volume will exceed the amount defined in sub-item 2.3.1 of item 2.3 of Article 2 of this Law during the reporting tax period by a factor of two or more, then such an entity must register as a payer of this tax before the expiry of such a reporting tax period.
The entity, which has failed to send such an application in such cases and within the above time frames, shall be liable for the failure to accrue or to pay the said tax at the level of a registered payer without the right to accrue the tax credit and to obtain the budget refund.
9.5. The application registration shall be sent to the tax agency with a notice of delivery or delivered in person by a representative of such an entity to an official of the tax agency. The tax agency must issue a certificate of the tax registration of such an entity to the applicant (send the same by mail) within ten days of the date of receipt of the application for the registration.
9.6. Taking into account the provisions of item 9.5 of this article, the application for the registration must be submitted (sent) to the tax agency:
a) by entities subject to the registration under sub-item 2.3.1 of item 2.3 of Article 2 hereof not later than on the twentieth calendar day of the attainment of the taxable transactions amount defined in the said item;
b) by entities subject to the tax registration in connection with their performing transactions defined in sub-items 2.3.2 to 2.3.4 of item 2.3 and item 2.4 of Article 2 hereof not later than twenty calendar days prior to the performance of such transactions;
c) entities, which have made a voluntary decision to register as taxpayers, not later than twenty calendar days prior to the commencement of the tax period, from which such entities will be deemed to be payers of this tax and become eligible for the tax credit and the issue of tax invoices.
Forms of the application for the registration and the registration certificate shall be specified by the central tax agency.
9.7. Copies of the registration certificate attested by the tax agency must be placed in visible places in the office of the taxpayer and in all its separated units.
Rules of such placement and the liability for the violation of such rules shall be specified by the central tax agency.
9.8. The registration shall be valid until annulled; the annulment shall take place, if:
a) the taxpayer has been registered under provisions of sub-item 2.3.1 of item 2.3 of Article 2 of this Law for more than twenty four calendar months, including the registration month, until the month of the submission of the application for the registration annulment, and has had the volumes of taxable transactions lower than defined in the said sub-item;
b) the liquidation commission of the taxpayer declared bankrupt is finishing the work or the taxpayer is being liquidated on its own initiative or by court decision (an individual ceases to have the sole trader status);
c) an entity registered as a taxpayer registers as a universal tax payer or becomes subject to other simplified taxation systems, which define a special procedure of the accrual or payment of the value-added tax different from those prescribed by this Law, or such an entity is exempt from the said tax by court decision or for any other reasons;
d) an entity registered as a taxpayer opts for a special taxation regime under this Law at rates other than those specified in Article 6 and Article 8-1 of this Law;
e) an entity registered as taxpayer has failed to submit returns on this tax to the tax agency for twelve sequential tax months or has submitted such a return (tax calculation), which confirms the lack of taxable supplies over the said period, as well as in cases defined by the legislation on the procedure of the registration of business entities.
The annulment of the registration on grounds listed in sub-item "a" of this item shall take place on the basis of the taxpayer's application.
The annulment of the registration on grounds listed in sub-items "b" to "e" of this item shall take place on the initiative of the relevant tax agency or such an entity.
In case of the annulment of the registration, the taxpayer shall cease to be eligible for the tax credit accrual and the budget refund, but is obliged to cover the amount of the tax liability or the tax debt related to this tax, which came into existence prior to such an annulment, if any, within the time frames prescribed by law, regardless of this entity's remaining registered as a payer of the said tax as of the date of the payment of such a tax amount.
If, as a result of the last tax period, the entity is eligible for the budget refund, the said refund shall be provided within time frames defined by this Law, regardless of whether such an entity will remain registered as a payer of this tax as of the date of receipt of such a budget refund. This rule shall not apply to entities covered by sub-item "c" of this item.
The tax agency may not deny the annulment of the registration in case of the availability of grounds defined in sub-items "a" to "b" of this item, and must make its own decision to annul the registration on grounds covered by items "c" to "d" of this item.
The decision on the registration annulment on the basis of an application of the taxpayer shall be made within time frames prescribed by this article for the tax registration.
A taxpayer must return the registration certificate to the tax agency:
if the registration is annulled on the taxpayer's initiative - simultaneously with the submission of the application for such an annulment;
if the registration is annulled on the tax agency's initiative - within twenty calendar days of the decision to annul. In this case, a delay with returning such a certificate shall be considered equivalent to a delay in providing the tax reports related to the said tax.
In case of the registration annulment, the period starting of the day, which follows the last day of the preceding tax period, and ending with the day of such an annulment shall be deemed to be the last reporting period.
A taxpayer, whose accounts as of the registration annulment date contain inventories or fixed assets, for which the tax credit has accrued during the preceding or current tax periods, must admit the notional sale of such commodities at usual prices and increase the amount of its tax liabilities accordingly as a result of the tax period, during which such an annulment takes place.
( Article 9 changed and amended according to Laws of Ukraine #25/98-VR of January 15, 1998, #277-XIV of November 20,
1998, #1955-III of September 14, 2000;  in the wording  of
Law of Ukraine #2505-IV of March 25, 2005 )
Article 10. Entities Responsible for the Accrual, Charging and Payment (Transfer) of the Tax to the Budget
10.1. The following shall be the entities responsible for accruing, charging and paying (transferring) the tax to the budget:
a) taxpayers defined in Article 2 hereof;
b) the customs agency while charging the tax from entities defined in item 2.4 of Article 2 hereof;
c) the taxpayer, which provided a tax promissory note, if the payment of the tax by entities defined in item 2.4 of Article 2 hereof is deferred by means of providing a tax promissory note;
d) in case of the provision of services by a non-resident - its permanent representative office or, lacking the same, the entity, which receives such services, if the place of the provision of such services is located on the customs territory of Ukraine;
e) taxpayers defined in sub-item 2.3.4 of item 2.3 of Article 2 of this Law, which engage into transactions of the sale of the confiscated property.
10.2. Taxpayers defined in sub-items "a", "c", "d", and "e" of item 10.1 of this article shall be responsible for the veracity and timeliness of the ascertainment of tax amounts, and the completeness and timeliness of the tax payment to the budget in accordance with the law. An entity, which had to be registered as a taxpayer in accordance with requirements of item 2.2 of Article 2 hereof, but failed to do so, shall be required to accrue and pay such a tax, and shall be liable for the failure to accrue or pay the same at the level of an entity registered as a taxpayer but without the right to issue tax invoices and accrue the tax credit.
10.3. Taxpayers covered by item 2.4 of Article 2 hereof shall be responsible for the compliance with rules of the provision of the information for the calculation of the taxation base (the tax amount to be paid) to an entity covered by sub-item "b" of item 10.1 hereof.
10.4. The correctness of the accrual and payment (transfer) of the tax to the budget shall be controlled by the relevant tax agency or, in case of the importation of commodities with the tax payment during the customs clearance thereof, by the relevant customs agency in accordance with rules specified by a joint decision of the central tax and customs agencies.
10.5. The tax amounts charged by the customs agency must be paid by taxpayers directly to the state budget (state treasury) accounts.
A backed promissory note issued by an importer of commodities (ancillary services) shall be the means of guaranteeing the delivery thereof to the destination customs offices and the proper payment of the tax to the budget.
( Paragraph 2 of Item 10.5 of Article 10 in the wording of Law of Ukraine #2771-IV of July 7, 2005 )
10.6. Forms of tax return and tax calculation related to this tax shall be specified in accordance with the law.
( Article  10  changed  and  amended  according  to  Laws  of  Ukraine#550/97-VR   of   September   26,  1997,  #644/97-VR  of  November  19,  1997,  #794/97-VR  of
December  30,  1997,  #25/98-VR  of  January  15,  1998,#277-XIV  of  November  20, 1998, #2181-III of
Decemeber  21,  2000;  in  the  wording  of  Law  of  Ukraine #2505-IV of March 25, 2005 )
Article 11. Closing Provisions
11.1. This Law of Ukraine On the Value Added Tax shall come into force on October 1, 1997.
( Paragraph 1, Item 11.1 changed according to Law of Ukraine #403/97 of June 26, 1997; Law of Ukraine #460/97 of July 16, 1997 )
In case under contracts made before this Law took effect for transactions exempt from taxation according to paragraphs "d", "e", Item 1, Article 5, Decree of the Cabinet of Ministers "On the Value Added Tax", expenditures were made or accounts were settled before this Law was adopted, such transactions under such contracts shall be taxable by tax payers - parties to such contracts according to provisions of the Decree."
( Paragraph 2 added to Item 11.1 according to Law of Ukraine #550/97 of September 26, 1997 )
.
11.2. Until such time as other legislative acts have been brought in conformity with this Law, the said acts shall remain effective inasmuch as they do not contradict this Law.
11.3. Decree #14-92 of the Cabinet of Ministers of Ukraine On the Value Added Tax, of December 26, 1992 (VVR, 1993, #10, p. 78; #26, p. 281; #34, p. 356; #49, p. 458; #50, p. 471; 1994, #20, p. 120; #22, p. 149; #27, p. 220; 1995, #44, p. 318; 1996, #25, p. 101; #27, p. 128; #31, p. 147, pp. 190; 192) shall henceforth be null and void.
11.4. The procedure of the taxation with the value-added tax may only be changed by means of the incorporation of changes into this Law with a separate law on the taxation with this tax. If another law, regardless of the time of its adoption, specifies the rules of the taxation with this tax different from provisions of this Law, then the provisions of this Law shall prevail. The above rule shall not apply to an international treaty accepted as binding by the Supreme Council (Parliament) of Ukraine.
( Item 11.4 of Article 11 in the wording of Law of Ukraine #2505-IV of March 25, 2005 )( Item 11.5 of Article 11 has been suspended for the year 2007 in respect of the application of the said item to transactions of the importation of commodities under commodity item 2711 of UKT ZED into the customs territory of Ukraine under Law of Ukraine #489-V of December 19, 2006 )
11.5. Starting from the effective date hereof, the payers of the tax during the importation of commodities into the customs territory of Ukraine subject to the execution of the customs declaration (except for the temporary or incomplete, periodical or preliminary declaration) may, at their discretion, provide a tax promissory note to the customs control agencies to the value of the tax liability; one copy of the said note shall remain in the customs control agency, the other copy shall be sent by the customs control agency to the state tax service agency in the place of the taxpayer registration, and the third copy shall be left with the taxpayer;
a tax promissory note must be confirmed by commercial banks by way of aval (backing);
commercial banks must pay a tax promissory note, if it is not redeemed by the payer on time;
the taxpayer may redeem the promissory note early by its own decision by transferring the funds to the budget or netting off the budget refund amount confirmed by the tax agency;
if the liabilities under the tax promissory note mature before the expiry of the time frame for the submission of the return to the tax agency for the reporting (tax) period of the delivery thereof to the customs control agency, the taxpayer shall not include the amount of the liability under the promissory note into the tax liabilities, and shall redeem the promissory note by transferring funds to the budget. In this case the taxpayer shall be eligible for the inclusion of the transferred amount of liabilities under the promissory note into the tax credit of the reporting (tax) period of such a payment;
if the liabilities under the tax promissory note mature after the expiry of the time frame for the submission of the return to the tax agency for the reporting (tax) period of the delivery thereof to the customs control agency, the amount of the liability under such a tax promissory note shall be included into the tax liabilities of the payer in the reporting (tax) period of the delivery thereof to the customs control agency. In this case the taxpayer shall be eligible for the inclusion of the amount of liabilities under the tax promissory note into the tax credit in the next reporting (tax) period subject to the repayment of the tax liability amount by the transfer of funds to the budget;
if, as of the date of delivery of the tax promissory note to the customs control agency, the taxpayer has a budget refund amount confirmed by the tax agency that equals, or is larger than, the amount of the liability under such a promissory note, the taxpayer shall be eligible for the inclusion of the amount of liabilities under the promissory note into the tax liabilities of the reporting (tax) period of the delivery of the promissory note to the customs control agency. In this case the tax promissory note shall be deemed redeemed, and the taxpayer shall be eligible for the inclusion of the amount of liabilities under the tax promissory note into the tax credit in the next reporting (tax) period;
The Cabinet of Ministers of Ukraine shall have the right to specify longer tax promissory note redemption periods for some activities being of seasonal nature or carried out on the basis of long-term contracts;
the tax promissory note redemption duties may not be transferred to other entities; a tax promissory note shall not be endorsable; no interest or other forms of payment for the utilisation of the tax promissory note shall accrue;
The procedure of the issue, circulation and redemption of tax promissory notes shall be specified by the Cabinet of Ministers of Ukraine.
This item shall not apply to transactions of the importation of the following into the customs territory of Ukraine:
( Paragraph 11 of Item 11.5 of Article 11 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
excisable commodities;
( The Paragraph of Item 11.5 of Article 11 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
commodities included into commodity groups 1 to 24 under UKT ZED;
( The Paragraph of Item 11.5 of Article 11 in the wording of Law of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
commodities under commodity sub-item 2709 00 and commodity items 2710 and 2711 under UKT ZED (2371a-14);
( The Paragraph of Item 11.5 of Article 11 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
any commodities by a party that has been registered as the payer of the tax in question for less than twelve calendar months prior to the month of such importation, except for commodities imported for the purposes of being included into fixed assets of such a tax payer by decision of the Cabinet of Ministers of Ukraine;
( The Paragraph of Item 11.5 of Article 11 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
any commodities by taxable persons in accordance with rules specified by the legislation on simplified taxation systems, which provide for the payment of the said tax in a manner different from the generally applicable method instituted by this Law.
( The Paragraph of Item 11.5 of Article 11 in the wording of Laws of Ukraine #107-VI of December 28, 2007, #309-VI of June 3, 2008 )
Taxpayers that carry out technological park projects under the Law of Ukraine "On Special Regime of Innovation Activities of Technology Parks" shall submit a tax promissory note to customs control agencies with the tenor of 720 calendar days in case of the importation of the new machinery, equipment and components or, in case of the importation of materials not manufactured in Ukraine, a tax promissory note in the amount of the tax liability with the tenor of 180 calendar days of the date of the promissory note submission to the customs control agency.
( The Paragraph added to Item 11.5 of Article 11 according to Law of Ukraine #3333-IV of January 12, 2006 )(  Item  11.5 of Article 11 changed and amended according to  Laws  ofUkraine  #550/97-VR  of  September 26, 1997, #573/97-VR of October 15, 1997, #624-XIV of May 6, 1999,#934-XIV of July 14, 1999, #1523-III of  March2, 2000, #1783-III of June 1, 2000,  #2899-IIIof December  20, 2001,  #1028-IV of July 9, 2003, #1218-IV  of  October 2, 2003, #1240-IV of  October 23,2003, #1801-IV of June 17, 2004; in the wording of Laws ofUkraine  #2505-IV of March 25, 2005; changed  and  amendedaccording to Law of Ukraine #2642-IV of June 3, 2005;   inthe wording of Law of Ukraine #2771-IV of July 7, 2005 )
11.6. VAT zero rate provisos contained hereinbefore shall be effective till January 1, 2000, specifically with regard to:
- coal and products of beneficiation thereof; coal and peat briquettes;
- electricity;
- gas imported to Ukraine.
( Paragraph 4 added to Item 11.6 according to Law of Ukraine #799/97 of December 30, 1997 )
In case of export of goods (works, services) outside the customs territory of Ukraine as part of barter transactions the value added tax payable on goods (works, services) shall not be included in the tax credit but shall be referred to tax payer gross production cost.
( Item 11.6 of Article 11 changed according to Laws of Ukraine #550/97 of September 26, 1997; #368-XIV of December 25, 1998 )
( Item 11.7 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.8 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.9. The Law of Ukraine On Transactions Involving Give-and-Take Raw Materials in the Foreign Economic Sphere, insofar as VAT payments, shall apply to transactions involving import of give-and-take raw materials to the customs territory of Ukraine until legislative acts of Ukraine concerning taxation of raw materials are in compliance with this Law.
( Paragraph 1 of Item 11.9 in the wording of Law of Ukraine #573/97 of October 15, 1997 )
.
Till the complete fulfilment of the contracts, the taxation with taxes (duties) based upon the customs value of goods of all the commodity groups shall be effected according to the same procedure, manufactured from the resident's give-and-take raw materials reimported to the customs territory of Ukraine provided actual expenses under contracts for processing raw materials were incurred before October 1, 1997 or such raw materials were wholly or partly exported outside the customs territory of Ukraine before October 1, 1997.
( Paragraph 2 was added to Item 11.9 according to Law of Ukraine #644/97 of November 19, 1997; changed and amended according to Law of Ukraine #977-XIV of July 15, 1999 )
( Item 11.10 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.11 On a temporary basis, until the Tax Code of Ukraine becomes effective, the tax payers selling the thermal energy, the natural gas (other than liquefied), including the gas transport cost, providing services of water supply and drainage or providing services, whose value is included in the rental or housing maintenance fees, to individuals, budget-funded institutions not registered as payers of the said tax, as well as to the housing maintenance organisations, apartment maintenance units, condominiums and other similar taxpayers, which collect funds from the said purchasers in order to transfer the funds to sellers of such products (services) as the compensation for their value (hereinafter referred to as 'ZHEKs'), shall determine the basis for the taxation of operations involving the delivery of such products (services) on a cash basis. The basis for the taxation of operations involving the provision of such products (services) to ZHEKs and budget-funded institutions receiving the said products (services) and registered as tax payers shall also be determined using the cash method.
( Paragraph 1 changed and amended according to Law of Ukraine #857-IV (857-15) of May 22, 2003 )
In case of the modification of the way of determining the taxation basis, the tax liability and tax credit amounts (including the amounts of the budgetary or export reimbursement) charged prior to the commencement of the application of the cash method or after the end of the application thereof shall not be subject to re-calculation in connection with the modification of such a way.
Terms used in this item shall have the following meanings:
- 'services, whose value is included in the rental or housing maintenance fees' shall be understood as the services of the maintenance of lifts and dispatcher systems, fire alarm and smoke exhaust systems, household electric stoves, the maintenance of the smoke and ventilation channels, the intra-house water and heat supply, waste and storm water disposal systems, the transportation and recycling of the solid household and large-sized waste, the cleaning of the house and the area adjacent thereto, as well as other services provided by ZHEKs to purchasers listed in this item at their expense;
( Paragraph 5 of Item 11.11 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.11 of Article 11 changed and amended according to Law of Ukraine #550/97 of September 26, 1997; Law of Ukraine #644/97 of November 19, 1997); in the wording of Law of Ukraine #794/97 of December 30, 1997; #2649-III of July 11, 2001 )
11.12.
( Paragraph 1 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 2 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 3 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 4 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 5 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 6 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 7 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 8 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 9 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 10 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 11 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 12 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
During the validity period of a product sharing agreement, the value-added tax shall be paid taking into account the specific features provided for by the Law of Ukraine "On Product Sharing Agreements".
( The Paragraph added to the Article according to Law of Ukraine #1807-III of June 08, 2000 )( Paragraph 14 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 15 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 16 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Paragraph 17 of Item 11.12 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )( Item 11.12  added  to  Article  11  acccording  to  Law  of  Ukraine#550/97-VR of September 26, 1997;  changed  and  amendedaccording  to Laws of Ukraine #403-XIV of January 15, 1999,#515-XIV  March  18, 1999, #722-XIV  of June 3,1999, #971-XIV of July 15,1999, #973-XIV of July15, 1999,  #1278-XIV  of  December  3, 1999,  #1375-XIV of January 13, 2000, #1606-III  of  March  23,2000, #1608-III  of  March 23, 2000, #1715-IIIof  May  11,  2000, #1749-III of June 1, 2000, #2199-III of December 21, 2000, #2323-III of March 22,2001, #2355-III of April 5, 2001,  #2744-IIIof October  4, 2001,  #3118-III  of March 7, 2002, #40-IV  of  July  4, 2002, #380-IV of December 26, 2002,#1344-IV  of  November 27, 2003,  #1702-IV  ofMay 11, 2004, #2285-IV of December  23, 2004 )( Item 11.13 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.14. Where tax-payers settle accounts with consumers making use of electronic cashier devices cash receipts shall indicate the total amount payable (VAT inclusive) and separately the VAT amount payable within the total sum.
The procedures of computation and accrual by electronic cashier devices of value added tax amounts shall be determined by the Cabinet of Ministers of Ukraine.
( Item 11.14 added to Article 11 according to Law  of  Ukraine #550/97 of September 26, 1997; in the wording of Law  of Ukraine
#522-XIV of March 19, 1999 )
( Item 11.15 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.16 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.17 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.18 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.19 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.20. Until the adoption of the Tax Code of Ukraine, whenever a taxpayer sells to parties not registered as taxpayers the agricultural produce and products of its processing earlier purchased (procured) by such a taxpayer from individuals not being payers of this tax, the retail supplement (surcharge) charged by such a taxpayer shall be the object of taxation.
( Item 11.20 added to Article 11 according to Law of Ukraine #644/97 of November 19, 1997; changed and amended according to Law of Ukraine #645-XIV of May 13, 1999; in the wording of Law of Ukraine #1779-IV of June 15, 2004 )
( Item 11.21 of Article 11 has been deleted according to Law of Ukraine #639-VI of October 31, 2008 )
11.21 The amount of the value-added tax to be paid to the budget by processing enterprises of all ownership forms for the milk and dairy products, meat and meat products sold by them shall be spent in full solely on the disbursement of subsidies to agricultural commodity manufacturers for the milk and live weight meat sold by them to processing enterprises. The procedure of accounting for the said funds shall be specified by the Cabinet of Ministers of Ukraine.
( Article 11 has been amended by adding Item 11.21 according to Law of Ukraine #922-VI of February 4, 2009 )
( Item 11.22 of Article 11 has been deleted according to Law #1274-XIV of December 3, 1999 - comes into force as from January 1, 2000 )
11.22. The Article 8-1 of this Law shall be provisionally suspended till 1 January 2009.
( Article 11 has been amended by adding Item 11.22 according to Law of
Ukraine #107-VI of December 28, 2007, in the wording of Law
of Ukraine #309-VI of June 3, 2008 )
11.23. For the period of the performance of work focused on the preparation for decommissioning and the decommissioning of power units of the Chernobyl Nuclear Power Plant, and the transformation of the "Shelter" facility into an environmentally safe system, which is performed at the expense of funds of the international technical assistance provided on a non-reimbursable and non-repayable basis or at the expense of funds earmarked in the state budget as the contribution of Ukraine to Chernobyl 'Shelter' Foundation for the implementation of the international programme named "Implementation Plan for "Shelter" Facility" according to provisions of the Framework Agreement between Ukraine and the European Reconstruction and Development Bank and the Grant Agreement (Chernobyl NPP Nuclear Safety Project) between the European Reconstruction and Development Bank, the Government of Ukraine and the Chernobyl Nuclear Power Plant:
- the operations involving the importation (dispatch) of commodities (raw materials, materials, instruments and equipment) into the customs territory of Ukraine shall be exempt from taxation;
- the operations involving the delivery of commodities (raw materials, materials, instruments and equipment), the performance of work and the provision of services on the customs territory of Ukraine, which are undertaken within the framework of the international technical assistance, shall be taxed at a zero rate. Amounts of the value-added tax paid by the taxpayer being the contractor for work and services under a contract concluded with the recipient of the international technical assistance or a non-resident entity, which concluded a contract with the recipient, shall be reimbursed from the budget within one month following the submission of the tax return, provided that the properly issued documents are available and corroborated with materials of the documentary inspection.
These privileges shall not apply to operations related to excisable commodities and commodities included into Groups 1 to 24 of the Ukrainian Classification of Commodities for Foreign Economic Activities (2371a-14, 2371b-14), 2371c-14, 2371d-14).
If the said commodities, work or services are not used for the designated purposes, the taxpayer must increase the tax liability resulting from the tax period of such violation by the amount of the value-added tax, which should have been paid at the time of the importation of such commodities into the customs territory of Ukraine or the performance of such work, or the provision of such services on the customs territory, as well as pay the fine accrued on such a tax amount on the basis of 120 per cent of the discount rate of the National Bank of Ukraine, which was effective as of the date of increase in the tax liability for the period starting from the date of the importation of such commodities or the performance of such work and the provision of such services and expiring on the date of the increase in the tax liabilities.
( Item 11.23 changed and amended according to Laws of Ukraine #309-XIV of December 11, 1998; #722-XIV (722-14) of June 03, 1999; in the wording of Law of Ukraine #856-IV (856-15) of May 22, 2003 )
( Item 11.24 of Article 11 has been deleted according to Law of Ukraine #722-XIV (722-14) of June 03, 1999 )
( Item 11.24 of Article 11 has been deleted according to Law of Ukraine #1523-III (1523-14) of March 02, 2000 )
( Item 11.25 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.26 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.27 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.28 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.29 of Article 11 has been deleted according to Law of Ukraine #639-VI of October 31, 2008 )
( Item 11.30 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.31 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.32 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.33 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.34 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.35 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
( Item 11.36 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.37. The transactions of the importation of commodities into the customs territory of Ukraine defined by item 'q' of Article 19 of the Law of Ukraine "On Universal Customs Tariff", as well as transactions of the delivery of such commodities to publishing houses and polygraphy enterprises on the territory of Ukraine shall be exempted from the taxation on a temporary basis till 01 January 2015.
( Paragraph 1 changed and amended according to Laws of Ukraine #1300-IV of November 20, 2003, #521-VI of September 18, 2008 )
In case of the failure to use the said commodities for designated purposes, a taxpayer shall be obliged to increase the tax liability as a result of the taxation period of such a violation by the amount of the value-added tax, which should have been paid at the moment of the importation of such commodities into the customs territory of Ukraine, and pay the fine charged according to the legislation of Ukraine.
( The Item added to the Article according to  Law  of  Ukraine #601-IV of March 06, 2003 - comes into force  as  from  January 01,
2004 )
11.38. The transactions of the performance of work and the delivery of services in the field of publishing, the operations of the manufacture and dissemination of book products manufactured in Ukraine by publishing houses, publishing organisations, polygraphy enterprises and dealers, the transactions of the manufacture and/or delivery of the paper and cardboard made in Ukraine for the manufacture of book products, as well as the transactions of the delivery of book products manufactured in Ukraine, except for advertising services, the placement of advertising and erotic materials, and the publications of advertising and erotic nature shall be exempted from the taxation on a temporary basis till 01 January 2015.
( The Item added to the Article according to Law of Ukraine #601-IV of March 06, 2003; in the wording of Law of Ukraine #1300-IV of November 20, 2003; changed and amended according to Law of Ukraine #521-VI
of September 18, 2008 )
11.39. During the validity period of the Law of Ukraine "On Introducing Changes into Some Taxation Laws of Ukraine in respect of Grain Crops" adopted by the Supreme Council (Parliament) of Ukraine on 23 October 2003, the taxpayers may submit a tax promissory note with a tenor up to 180 days to the customs control agencies, while importing commodities covered by definitions of the UKT ZED (2371a-14) (Ukrainian Commodity Classification for the Foreign-Economic Activities) codes 1001 10 00 90, 1001 90 99 00, 1002 00 00 00 at own discretion. The amount specified in the tax promissory note shall be included into the amount of tax liabilities of such a taxpayer in the tax period containing the 180th day of the date of issue of such a promissory note to the customs control agencies or, at discretion of such a taxpayer, in preceding tax periods, as well as into the tax credit of the next tax period.
The taxpayer, which imports (dispatches) into the customs territory of Ukraine the commodities covered by definitions of the UKT ZED (2371a-14) codes 1001 10 00 90, 1001 90 99 00, 1002 00 0000 or sells such commodities manufactured (acquired) on the territory of Ukraine during the validity period of the said Law, and has the amounts of the budgetary refund (including the export refund) specified by the taxpayer in tax returns but not refunded to the taxpayer within the time frame specified by this Law (the amount of the overdue budget refund) before the effective date of the Law of Ukraine "On Introducing Changes into Some Taxation Laws of Ukraine in respect of Grain Crops" adopted by the Supreme Council (Parliament) of Ukraine on 23 October 2003, shall have the right to reduce the amount of the tax liability of the tax reporting period by the amount of the tax received (accrued) in such a tax reporting period from the delivery of commodities specified in this paragraph, but not more than the amount of such an overdue budget refund, which shall be considered redeemed in the amount of such a reduction. If the overdue budget refund remains non-redeemed in full, the taxpayer may undertake the net-off specified in this paragraph during the next tax periods, until the amount of such an overdue budget refund is redeemed in full. The taxpayer must provide the appropriate calculations in an appendix to the tax return in the form specified according to the law.
( The Item added to the Article according to Law of Ukraine #1240-IV of October 23, 2003 )
11.40. The transactions of the performance of work and the delivery of services by business entities being residents of Ukraine, which simultaneously engage into the publishing business and the business of the manufacture and dissemination of book products, and the production of the paper and cardboard, shall be exempted from the taxation on a temporary basis till 01 January 2015. At that, the gross income of such a business entity obtained from the publishing business, the business of the manufacture and dissemination of book products, and the production of the paper and cardboard should account for at least 100 per cent of the total value of its gross income for the first reporting (taxation) period since the establishment of such a business entity or not more than 50 per cent of the total value of its gross income for the previous reporting (taxation) year.
( The Item added to the Article according to Law of Ukraine #1300-IV of November 20,
2003; changed and amended according to Law of Ukraine #521-VI of September 18, 2008 )
( Item 11.41 of Article 11 has been deleted according to Law of Ukraine #2505-IV of March 25, 2005 )
11.42. Provisions of item 4.5 of Article 4 and paragraph three of sub-item 7.7.3 of item 7.7 of Article 7 of this Law shall not apply to the debt subject to the write-off, settlement, restructuring and/or partial payment mechanisms on conditions specified by the Law of Ukraine "On Measures Aimed at ensuring the Stable Operation of Fuel and Energy Sector Enterprises".
(  Item 11.42 added to Article 11 according to Law of Ukraine #2711-IV of June 23, 2005 )
11.42. It shall be established that if a sole trader is simultaneously registered as a value-added tax payer and is a payer of the universal tax under the simplified taxation, accounting and reporting system, the said sole trader shall bee subject to the value-added tax accrual and payment procedure under this law.
Legal entities and sole traders, which are payers of the universal tax under the simplified taxation, accounting and reporting system not registered as payers of the value-added tax, shall not be eligible for the tax accrual, the tax credit, and the compilation of tax invoices, as well as the obtainment of the budget refund.
(  Item 11.42 added to Article 11 according to Law of Ukraine #2771-IV of July 7, 2005 )
11.43. The payment of the value-added tax in case of the importation of the movable property for the performance of repair operations under the customs regime of processing, as well as for the modernisation purposes, shall be carried out by means of the issue of a simple promissory note in the case and in line with the procedure specified by the Cabinet of Ministers of Ukraine.
(  Item 11.43 added to Article 11 according to Law of Ukraine #2771-IV of July 7, 2005 )
11.44. The transactions of the supply of the ferrous metal waste and scrap, including transactions of the importation of such commodities shall be exempted from taxation provisionally till 1 January 2009. The list of such commodities with the indication of their codes under UKT ZED shall be approved by the Cabinet of Ministers of Ukraine.
(  Item 11.44 added to Article 11 according to Law  of  Ukraine #398-V of November 30, 2006; changed and amended according to  Law
of Ukraine #107-VI of December 28, 2007; in the  wording of
Law of Ukraine #309-VI of June 3, 2008 )
11.45. The tax amount paid (accrued) in connection with the procurement of commodities (services) shall not be included into the tax credit but posted to the gross expenses of the taxpayer in case of the exportation (export) of commodities from the customs territory of Ukraine by means of barter (commodity-exchange) transactions on a temporary basis till 1 January 2008.
(  Item 11.45 added to Article 11 according to Law  of  Ukraine #398-V of November 30, 2006 )
11.46. On a temporary basis till 1 January 2012, the transactions of the importation of pedigree cattle or genetic materials (UKT ZED codes 0102 10 10 00, 0102 10 30 00, 0102 10 90 00, 0511 10 00 00, 0511 99 90 10) (2371a-14) into the customs territory of Ukraine by parties subject to the special tax regime instituted with Article 8-1 of this Law shall be exempted from taxation. Transactions of the subsequent supply of the said pedigree cattle or genetic materials are taxed according to the generally applicable procedure.
( Article 11 has been amended by adding Item 11.46  according to Law  of  Ukraine #639-VI of October 31, 2008 )
11.48. Transactions of the import of commodities (capital assets) received by the UEFA in Ukraine shall be exempted from taxation during the period of the holding of the finals of the 2012 European Football Championship in Ukraine.
( Article 11 has been amended by adding Item 11.48 according to Law of Ukraine #1474-VI of June 5, 2009 )

Leonid Kuchma, President of Ukraine
City of Kyiv, April 3, 1997
#168/97-VR