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Automatically translated version. May contain inaccuracies compared to the original.
✅🇪🇺Ukraine is preparing tax rules for merging its electricity markets with the EU. The government approved a draft law that changes the procedure for paying VAT and excise on electricity - Vasylevska-Smagliuk
The place of supply of electricity for VAT purposes will be considered the place of its consumption. For supplies to taxable dealers, reverse-charge VAT will be introduced, where the buyer accounts for the tax. A register of such dealers will also be created, and electricity imports will be exempt from VAT.
The excise rate will be set at the level of 2,8 euros per MWh, with rules defined for taxation of sales and final consumption of electricity.
If the Verkhovna Rada adopts the draft law, the new provisions are to take effect from 1 January 2029. The first possible window for market coupling has been set for Q1 2029.
According to the Ministry of Finance, adoption of the draft law is a key condition for receiving EU macro-financial assistance.
- explained Member of Parliament Olga Vasylevska-Smagliuk
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