Policy Win: Parliament Adopted Common 7% VAT Rate for All Medical Devices
On December 7, the Verkhovna Rada of Ukraine introduced amendments to the Tax Code of Ukraine, according to which the rate of value added tax (VAT) in the amount of 7% applies to the supply of goods in and the importation into the customs territory of Ukraine of all medical products included in the State Register of Medical Devices and Medicinal Products or meet the requirements of the relevant technical regulations, confirmed by the compliance document, and are allowed for entering the market and/or putting into operation and use in Ukraine.
Previously, 7% VAT rate was applied exclusively to the medical products included to the List, established by CMU Resolution #410 “On Approval of the List of Medical Products, the Supply Transactions into the Customs Territory of Ukraine and Importation to the Customs Territory of Ukraine of which is Subject to Value Added Tax at a Rate of 7%”.
Chamber Working Group on Healthcare Hardware & Medical Devices Manufacturers has repeatedly raised the issue of creating conditions for unfair competition by market participants through the different VAT rates for homogeneous products, as well as the existence of an additional barrier for innovative medical products that have not yet been included into the List, and therefore they were entitled to a basic VAT rate of 20%.
The experts of the Chamber Working Group welcome the establishment of equal conditions for competition on the market of medical devices.