Clarification of special VAT regime taxation

On 11 February 2016, the State Fiscal Service of Ukraine published it letter No. 4698/7/99-99-19-03-02-17 «On refusal to apply the special VAT regime».

Due to a number of enquiries in relation to voluntary refusal of agricultural entities to apply the special VAT regime, the State Fiscal Service of Ukraine clarified that the agricultural entity is entitled, but not obliged to choose whether to apply the special VAT regime. Thus, transfer of the agricultural entity from the special to general VAT regime is carried out on the basis of its voluntary decision.

Following the date of its voluntary refusal to apply the special VAT regime and exclusion from the respective register of entities under special VAT regime, such entity should submit its tax declaration to the State Fiscal Service of Ukraine (with a mark “0110”).