UNIAN
A law is expected to come into force in the coming days in Ukraine that cancels the payment of VAT on import of certain medicines and medical equipment for use by the state healthcare system.
On May 5, 2015 Ukrainian President Petro Poroshenko signed a Law "On amendments to the Tax Code of Ukraine concerning exemption from taxation of certain drugs and medical devices."
The law will also reduce the cost of drugs and medical devices purchased by specialized international organizations, the presidential press office reported.
The law will allow for the carrying out of state-funded procurements of larger volumes of drugs and medical devices and, consequently, ensuring the provision of necessary assistance to a larger number of patients.
The changes to the Tax Code of Ukraine that were approved under the law will provide a temporary value added tax exemption, until March 31, 2019, on imports of certain drugs and medical devices to the customs territory of Ukraine.
The list of drugs and medical devices that are exempt from taxation is to be determined by the Cabinet of Ministers.
The exemption will also apply to operations for the supply of the above-mentioned drugs and medical devices that have been imported and/or delivered to the customs territory of Ukraine, according to the procedure stipulated by the law, from the central body of executive power of Ukraine, which ensures the development and implementation of the state policy in the sphere of public health.
It will also apply to state-owned enterprises determined by an order of the central executive body, and to the ultimate consumer (patient) in the framework of the implementation of budget programs for carrying out medical activities in the health sector.
The law also exempts imports of the above drugs and medical devices from additional import duties established by the Law "On measures concerning the stabilization of the balance of payments of Ukraine in compliance with Article XII of the General Agreement on Tariffs and Trade 1994" by defining the status of such drugs and medical devices as essential goods.
Prevention of the supply of the above mentioned drugs and medical products to retail networks will be ensured through the establishment of liability for the misuse of such drugs and medical devices.
The law also bans the establishment of a "chain" of artificial providers to the customs territory of Ukraine, since the exemption from VAT will be applied only to the import and the first delivery of the above drugs and medical devices.