Eliminating import taxes on generators and batteries will not lead to lower prices for consumers, since the VAT exemption applies only to imports for one’s own needs, and not for sale.
Tax changes
Deputy request
People's representative Alexander Fedienko appealed to the State Tax Service in order to clarify the situation regarding the abolition of taxes on the import of generators and batteries. The response received from the State Tax Service revealed the nuances of the new legislation.
The essence of tax changes
According to the explanation of the State Tax Service, the new rules exempt the import of certain goods from VAT, but only on the condition that they are imported for personal use and not for commercial purposes. This means that companies selling generators and batteries can import them without paying VAT, but are required to include this tax when selling the goods to the final consumer.
Impact on the market
As a result of these changes, as Fedienko explains, we cannot expect a significant reduction in the cost of generators and batteries for the population costs. Market prices for these goods are likely to remain unchanged.
Legislation details
"Judicial Legal Newspaper" provides additional information about laws No. 3853-IX and No. 3854-IX, which came into force on the 27th. These legislative acts exempt the import of certain categories of goods from customs duties. In particular, Law No. 3854-IX abolishes the duty on generators with a piston engine and spark ignition that have specific UKT VED codes. However, it is important to note that diesel generators, which are widely available, are not covered by this law and are still subject to duty.
Final Effect
Ultimately, generators imported for the purpose of sale are not exempt from VAT. Moreover, most types of generators are still subject to customs duties. Consequently, there is no need to talk about increasing the availability of these goods on the market or reducing their cost for ordinary consumers. The exception is when generators are purchased for their own use, for example, by mobile operators.
Glossary
- State Tax Service of Ukraine, the executive body responsible for the implementation tax policy.
- VAT - Value added tax, an indirect tax included in the cost of goods and services.
- UKT VED - Ukrainian classification of goods for foreign economic activity, a system of codification of goods for customs purposes.
- Alexander Fedienko - People's Deputy of Ukraine, initiator of the request to the State Tax Service on the issue of taxation of generators and batteries.
- "Judicial Legal Newspaper" - Ukrainian publication specializing in legal issues and judicial practice.
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Answers to questions
Have import taxes been abolished generators and batteries?
Will generators and batteries become cheaper for the population?
What types of generators are duty exempt?
Does VAT exemption apply to all types of generators?
How will the new laws affect the generator and battery market?
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Discussion of the topic – Tax incentives for generators: what Ukrainians need to know
The article explains the situation with the abolition of VAT on the import of electric generators and batteries in Ukraine. According to the response from the State Tax Service, VAT exemption applies only to goods purchased for one's own use and not for resale.
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Isabella
Oh, how tired I am of these taxes and duties! 😫 I thought that at least it would be easier with generators, but here again there are some conditions and restrictions. Can't we just make them available to everyone?
Hans
Isabella, I understand you. But let's look at it from the other side - at least for some companies this is a relief. Maybe in time it will come to us? 🤔
Pierre
Guys, haven’t you thought that this could be a step towards the development of domestic production of generators? 🏭 Maybe we should invest in local companies instead of waiting for imports?
Sofia
Pierre, interesting idea! You know, I recently read about a startup that is developing environmentally friendly generators. Maybe this is our chance to become more independent? 🌱
Viktor
Ha! Again these fashionable eco-friendly things of yours. Previously, we lived without all this and nothing, and we managed. There is nothing to invent; it would be better if prices for ordinary goods were reduced.
Marta
Viktor, but the world does not stand still! 😊 Technology is developing, and that's great. Sofia, tell us more about this startup, it sounds very interesting!
Hans
What if we unite and purchase a batch of generators for our area? Maybe it will be cheaper this way and we can bypass these tax obstacles? 🤝
Isabella
Hans, great idea! 👍 I'm for it! Maybe we can also involve local authorities in this issue? Together we are strong!