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On February 1st, 2017 draft law "On Amendments to the Tax Code of Ukraine regarding the Abolition of Value Added Tax on the Domestic Medicinal Products Sale and Supply within the Territory of Ukraine" (hereinafter - the "Draft") was registered with the Verkhovna Rada of Ukraine under No. 6012.
The Draft provides for changes in the Transitional Provisions of the Tax Code of Ukraine, introducing temporary exemption until December 31st, 2018 of the following categories of transactions from the VAT:
sale and supply within the territory of Ukraine of domestic medicinal products registered with the State Register of Medicinal Products;
sale and supply within the territory of Ukraine of medical devices registered with the State Register of Medical Equipment and Medical Products, and / or put into circulation in compliance with the legislation in the area of technical regulations and conformity assessment.
The procedure for the sale of such medicinal products and medical devices exempt from VAT should be developed by the Cabinet of Ministers of Ukraine within a month.
Thus, as a result of adoption of the Draft, only a part of medicinal products will be exempt from 7% VAT, namely domestic medicinal products registered with the State Register of Medicinal Products.
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