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Another new List of medical devices subject to 7% VAT

A new List of medical devices, the operations of the supply and importation of which in the customs territory of Ukraine are subject to VAT at 7 per cent was approved by the CMU Resolution No.410 of September 3, 2014, and the CMU Resolution d.d. July 1, 2014 No. 216 was invalidated, respectively.

Thereby, the Government of Ukraine has decided to increase the number of medical devices, operations of the supply and importation of which in the territory of Ukraine will be VAT taxable at the full rate of 20 per cent.

The CMU Resolution d.d. September 03, 2014 No. 410 was promulgated in the official bulletin, the newspaper "Governmental Courier", d.d. September 10, 2014. Basically, this means that from 00.00 September 10, 2014 the CMU Resolution has already come into force, and the import and supply (including sales through round-the-clock pharmacies) of medical devices are subject to the requirements provided for by this resolution.

The List enacted and approved by the resolution has no time limit.

The new List is structured according to the names of medical devices and custom (UKTVED) codes, and in most cases is also combined with the mark "*", which according to the resolution means the mandatory labeling of medical devices.

Please note that the List does not contain any medical devices that are needed for children (silicone baby feeding bottle nipples, different types of nipples, diapers) and people with incontinence (nappies (diapers) and the like goods for children. Thus, from September 10, 2014 these products are subject to VAT at the full rate of 20 per cent.

Additionally, note that as of today there are no explanations of the authorized bodies about the further supply of medical devices that have been imported into the territory of Ukraine at the rate of 7 per cent and were not included in the List, which is in force since September 10, 2014, at the full rate of 20 per cent. Therefore, today there is no legitimate reason to provide comments regarding the taxation of such medical devices and of their revaluation.

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Dmytro Aleshko Managing partner, Attorney-at-law
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Vitalii Savchuk
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