The EU-UA “Economic Visa-Free Regime”, The Exemption from VAT Energy Sector Goods

The EU Council Adopts Renewal of the “Economic Visa-Free Regime” with Ukraine

On 25.05.2023, the EU Council adopted a Regulation that renews the “economic visa-free regime” with Ukraine, by which Ukrainian exports are exempted from all customs duties, quotas and trade defense measures until June 2024.

Such relaxations apply to fruits and vegetables subject to the entry price system (an additional price surcharge aimed at raising it to the average European level), as well as agricultural unprocessed and processed products subject to tariff-quota restrictions.

Let us please remind you that customs duties for industrial goods ceased to apply from 1 January 2023 under the terms of the Association Agreement.

Now that the Regulation has been adopted, it will be signed by the representatives of the Council and the European Parliament and published in the Official Journal, before entering into force on 6 June.

The Exemption from VAT and Import Duties for Energy Sector Goods has been Reinstated

Let us please remind you that on 29.11.2022 the Cabinet of Ministers of Ukraine adopted a Resolution that expands the list of goods, the importation of which into the territory of Ukraine is exempt from VAT and import duties, with the aim of restoring the energy infrastructure.

Thus, by the decision of the Cabinet of Ministers dated 19.05.2023 the validity of this Resolution has been extended until 30 June 2023.

The Resolution provides the exemption from VAT and import duties for the import of goods necessary for the sustainable supply of electricity (engines, generators, etc.)

The State Customs Service of Ukraine emphasizes that importing goods from the approved list without paying VAT and import duties is possible only if they were fully or partially paid for before 01.05.2023.