Area
Ukraine
Commodity Group
Oilseeds, oils and meals
Commodity
Soybeans, rapeseed, sunflowerseed
Date
01/12/2017
Policy Category
Trade
Policy Instrument
Export policy
Description
Announced the cessation of the existing value-added tax refund for sunflower seed, soybean and rapeseed exports, effective, respectively, 1 March 2018, 1 September 2018 and 1 January 2020. Subsequently postponed the implementation date applying to soybean and rapeseed farmers (but not traders) to 31 December 2021.
Notes
On 7 December 2017, the Ukrainian Parliament voted to lift the existing value added tax refund on exports of soy, sunflower and rapeseed with effect from 1 March 2018. Subsequently, the Parliament agreed to soften the measure: based on the latest amendments, the tax refund for sunflowerseed exports will remain in place, while the refunds for rapeseed and soybean shipments will only be suspended for a limited period, namely from 1 September 2018 to end 2021 for soybeans and from 1 January 2020 to end 2021 for rapeseed. The bulk of Ukraines rape and soy production is exported in the form of seeds, as opposed to sunflower, which is crushed locally and subsequently exported as oil and meal. The temporary suspension of refunds for rape and soy could weigh on the crops domestic prices, possibly leading to a drop in plantings, while Ukraines crushers could benefit from higher seed supplies.
