Is it true that tax and customs duties for importing generators and batteries have been abolished? This question was raised by Olexander Fedienko, a member of the Verkhovna Rada’s National Security Committee, who sent an inquiry to the Tax Service. It turns out that tax relief applies only to a small category of items.
"To the attention of telecom operators. The changes pertain to generators and batteries for your communication nodes," the explanation states.
According to the explanation received by the MP from the Tax Service, tax and customs duties for generators and batteries are indeed abolished, but only if you are importing these items for personal use.
"In other words, if you are an operator who purchased generators and batteries abroad for your own needs (not for resale), then you are exempt from VAT. If you buy from a company that imported these items for resale, then neither the company nor you are exempt from VAT. In my view, this creates unequal market conditions," noted Fedienko.
As indicated in the response from the Tax Service, the VAT exemption regime established by paragraph 87-1 of subsection 2 of Section XX of the Tax Code applies exclusively to operations involving the importation into the customs territory of Ukraine (including movement (shipping) in international postal and express shipments) in the customs regime of import of goods specified in paragraph 9-36 of Section XXI of the Customs Code of Ukraine.
At the same time, the provisions of paragraph 87 of subsection 2 of Section XX of the Tax Code do not provide for VAT exemption on the supply of goods defined in paragraph 9-36 of Section XXI of the Customs Code on the customs territory of Ukraine.
Thus, operations involving the supply of goods (i.e., generators and batteries) within the customs territory are subject to VAT at the general rate of 20%.
Moreover, laws that provide for the exemption from customs duties on certain goods came into effect on July 27, 2024. Law No. 3854-IX exempts only generators (electric generator sets with spark-ignition piston engines) with codes according to the UKT ZED: 8502 20 40 90, 8502 20 60 90, 8502 20 80 90.
However, diesel generators (electric generator sets with compression ignition piston engines (diesel or semi-diesel)) have the code according to the UKT ZED: 8502 12 00 90. This type is not mentioned in Law 3854-IX. Thus, the changes do not cover one of the most common types of generators.
