In 2018, the practice of providing instalments for the payment of import VAT is extended. It should be reminded that at the beginning of 2017 such an instalment was granted for a period of up to 36 calendar months without accruing interest and penalties for the import of equipment for use in the woodworking industry, as well as for the production of only medical products. Those who want to pay the import VAT by instalments should remember the following.
Instalment Rules
In the period from 01.01.2018 to 01.01.2020, VAT payers are granted the right to pay VAT by instalments when import of equipment according to the list of codes according to UCC FEA in accordance with para.65 of sub-para.2 of sec. XX of the Tax Code of Ukraine (hereinafter - TCU), which is imported for own production in the territory of Ukraine. Instalment (by equal parts) of VAT payments can be made no more than for 24 calendar months.
For this, the VAT payer must submit a statement to the controlling authority in the prescribed form. During the period of using the instalment, interest, penalties and fines determined by TCU should not be applied.
In the general case, the balance of the obligation to pay VAT is to be enforced in accordance with sec. X of the Customs Code of Ukraine (hereinafter - CCU) or a bank guarantee.
Resolution of CMU No. 85 of 07.02.2018, which came into force on 21.02.2018, establishes the Procedure for granting instalment of VAT payment and application of provision in accordance with para.65 of sub-para.2 of sec. XX of TCU.
Therefore, now it is quite real to get “import” instalment. It can be used by business entity that imports equipment of certain codes of UCC FEA for its own production in Ukraine.
Note that in the case of payment of import VAT by instalment, the provisions of Article 100 of TCU should not be applied.
When instalment is impossible
The instalment of VAT is not granted in the case of import of equipment if it originates from a country recognized by the state-occupier in accordance with the law of Ukraine and/or recognized by the aggressor state in relation to Ukraine in accordance with the law or is imported from the territory of such an invading state (aggressor) and/or from the occupied territory of Ukraine, determined in accordance with the law of Ukraine.
Several important nuances
Maximum possible term of instalment is 24 calendar months. However, it can be also provided for a shorter period. Its payer determines independently and points out in the statement of instalment.
It should be noted that instalment is provided only in equal parts, that is, the amount of VAT is divided into equal parts at the term specified in the statement.
Interest, fines and penalties are not accrued for the period of instalment.
The payer should include paid VAT amounts in the tax credit in the reporting period in which the VAT was paid to the budget.
Payers, who use the instalment of the import VAT in accordance with paragraphs 58 and 59 of sub-sec. 2 of sec. XX of TCU, have the right to change the enforcement of obligations for VAT payment given to the controlling authority in accordance with sec. X of CCU, to enforce the obligations to pay VAT with a bank guarantee or a pledge.
