By Olena Kuchynska, Viktoriia Pysmenna

RENEWABLES: New rules may promote more environment-friendly solutions

In December 2018, the President of Ukraine signed the Law of Ukraine “On Amending the Tax Code of Ukraine and Other Legislative Acts of Ukraine on Improving Administration and Revision of Some Taxes and Fees” No. 2628-VIII dated 23 November 2018 (“Law No. 2628”). Law No. 2628 extends the period of VAT exemption for imports of electric cars by an additional three years and creates more opportunities for investors in renewable energy (“RE”), as described below.

Import VAT exemptions for RE plant equipment

Law No. 2628 exempts certain imported equipment for the construction of RE plants from VAT from 1 January 2019 until 31 December 2022. The VAT exemptions apply to:

  • wind power generation units (code 8502 31 00 00 under the Ukrainian Classification of Goods of Foreign Economic Activity (the “UCGFEA”));
  • photovoltaic and related elements (UCGFEA code 8541 40 90 00);
  • transformers with capacity exceeding 10,000 kV·A (UCGFEA code 8504 23 00 00);
  • invertors with capacity exceeding 7.5 kV·A (UCGFEA code 8504 40 88 00).