Amendment to article 197 of the Tax Code of Ukraine on the establishment of favourable conditions to ensure the execution of government contracts with defence orders and contracts for the supply of defence products
(Information of the Verkhovna Rada (VR), 2015, No. 28, pp. 243)
Verkhovna Rada of Ukraine ruling :
1. Article 197 The Tax Code of Ukraine (Verkhovna Rada of Ukraine, 2011, No. 13-17, pp. (112) to complement paragraph 197.23 of this content:
" 197.23. It is exempt from the taxation of import operations to customs territory of Ukraine in the customs import mode of goods defined. part of the eighth article 287 of the Customs Code of Ukraine, and of the first supply of these goods in the customs territory of Ukraine for their use in the production of a defence-purpose products determined by law, and if the customer of such products is a state customer, By the Cabinet of Ministers of Ukraine.
In case of unintended use of goods defined part of the eighth article 287 of the Customs Code of Ukraine, the tax payer increases the tax obligations of the tax period, which accounts for a violation, on the amount of tax that should be paid at the time of the import of such goods or by operations of the the supply of such goods, pays a penny provided according to this Code, and carries out financial, administrative and criminal liability established by this Code and the legislation of Ukraine.
The order of import, supply and target use of goods defined part of the eighth Article 287 of the Customs Code of Ukraine, which is imported into customs territory of Ukraine in customs import and supplied to customs territory of Ukraine, is defined by the Cabinet of Ministers of Ukraine.
Exemption from taxation established by this item does not apply to foreign import operations of Ukraine in customs import and supply in the customs territory of Ukraine of goods of origin from the country recognized by Ukraine. In accordance with the law of Ukraine and/or recognized by the State-aggressor in relation to Ukraine by law, either to the territory of such a State-Kupanta (aggressor), or from the occupied territory of Ukraine, defined by with the law of Ukraine. "
2. This Act will take effect from the day, the next in the day of its publication.
3. The Cabinet of Ministers of Ukraine in a three-month period from the day of entry into force:
To develop and approve regulatory and legal acts necessary to implement this Act;
To bring their legal and legal acts into compliance with the Act;
To ensure that the Ministries and the other central authorities are responsible for their normative and legal acts in compliance with the Act.