New Way of Determination of Medical Devices Entitled to Taxation on Favorable Terms

On 02.07.2015 the Ministry of Health of Ukraine published the draft resolution of the CMU "About adoption of the list of medical devices, supply and import of which on the custom territory of Ukraine are subject to VAT under 7% rate ” on its website for public discussion.

The Draft stipulates the new way of the determination of the medical devices, operations of which require taxation under 7% rate.

Currently, effective is the List of the medical devices, operations with which are subject to the taxation under 7 % rate, ratified under the resolution of CMU on 03.09.2014 # 410. This list is folded according to the names of medical devices and UKTZED code.

Contrary, pursuant to the Draft it is suggested to set a favourable rate for taxation of all medical devices, included into the State register of medical techniques and devices of the medical utility, and medical devices and auxiliary facilities which declaration is made in relation to, a certificate is issued or made an application in relation to the medical devices of the special utility, or application in relation to the medical devices for diagnostics of in vitro, intended for an estimation of characteristics according to the requirements of the proper technical regulations.

Thus, favourable terms will be used to all medical devices, regardless of their UKTZED code and practice of the selective setting of favourable rate will be canceled.

It shall be highlighted that in the case of acceptance of the Draft resolution, such state register is only subject to adoption in order to implement the provisions of the resolution.