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Installment payment of VAT when importing equipment: We are happy to help you!

09.07.2018

               рассрочка на уплату ндс при импорте оборудования

Garant-Servis is your reliable assistant in the world of customs control and financial services.

Our highly qualified specialists stand ready to assist you, and it applies to all matters related to our activity! The issue of VAT payment in installments when importing equipment is not an exception! 

Resolution № 85 approved the procedure of providing an installment plan for VAT payment in accordance with paragraph 65 subsection 2 section XX of the Tax Code (hereinafter – TC Resolution № 85). The installment plan is provided for the period indicated in the payer's application, but not longer than 24 calendar months; with no interest penalties and fines charged, which are provided by the TC.

In order to receive the installment plan, you need to submit the following documents and information to the customs of the State Fiscal Service (SFS):

  • declaration, using the form given in Appendix 1 to the TC Resolution № 85;
  • documents required by Article 335 of the Customs Code (hereinafter - CC) (for customs control);
  • business project, business plan or other document, which describes the business process with cost estimates and indicates expected results;
  • current conclusions provided by the state authorities, expert institutions, organizations, state standards and standards of the enterprise, technic specifications, technical documentation, documentary proves of the production capacities, premises of the payer.

The customs authority shall make a decision to provide the installment plan within 10 business days from receiving the application.

If the amount of VAT declared for installments is more than UAH 1 million, then the decision is made in agreement with the chairman of the SFS within 25 business days from receiving the application.

Reasons for refusal of the installment plan:

non-conformities in the imported equipment with its commodity position in the UKTZED (the Ukrainian classification of goods in foreign economic activity), stipulated in paragraph 65 of the subsection, 2 section XX of the Tax Code;

  • inconsistency of equipment cost and the cost information indicated in the application;
  • the fact of the outstanding debts of taxes and contributions payments and sanctions in force at the time of submission of the application applied to the payer, according to Article 37 of the Law of 16.04.91, № 959-XII;
  • the lack of production capacities or premises, needed to record and store the goods and end products;
  • the fact that the equipment is produced by an occupying country or is imported from an occupying country or from the occupied territory of Ukraine.

In case of refusal to provide the installment plan, the customs authority of the SFS should indicate the reasons.

Once the VAT payer receives the installment decision, he pays the first payment upon registration of the equipment. The taxpayer submits to the customs authority a securing of the fulfillment of his obligations for the remaining amount of VAT tax liabilities within section X of the CC or a bank guarantee in accordance with the law. The VAT amounts are further paid monthly on the date fixed in the decision.

Please note: the VAT amounts paid in installments are included in the tax credit in the reporting period of their payment to the budget (paragraph 65 subsection 2, section XX of the Tax Code)!

 The VAT payer has the right to repay the amount of the VAT payment installments.

Also, during the whole period of using the installment plan, the payer must submit a report on the target use of the imported equipment on a monthly basis, no later than the business day following the payment day of the part of the payment. The form of the report is given in Appendix 4 to TC Resolution № 85.

Our company is happy to assist importers and provide a financial guarantee for the installment payment of VAT!

Grant Servis is the guard of your business!