The cancellation of export VAT deferred: will rise if the price of soybeans?
To resolve inconsistencies in the previously adopted law 6776-p, which was amended in the Tax code, the Verkhovna Rada of 274 votes, with 226 needed took the decision to postpone the application of rules on the abolition of VAT reimbursement during export of rapeseed until January 1, 2020, and exports of soybeans to 1 September 2018. When exporting sunflower compensation of the VAT is to be abolished from 1 March 2018.
However, in the ASTP believe that delaying the introduction of these norms will be only the first victory of the farmers. Planning in the agricultural sector is carried out for 3-5 years, so the MPs must adhere to long-term and transparent rules of the game, that will stimulate flow of investment, and not to worsen the global image of the country.
the Decision of VR of December 7, almost stopped buying soybeans in the domestic elevators. Traders bought soybeans at the port, to form and send the export consignments before the end of February. Due to the fall in world prices for soybeans in Ukraine, purchasing prices also fell by 5-10 $/MT, and only devaluation of the hryvnia has kept the domestic price level 11750-11900 UAH/t with delivery to the port.
in the Near future, traders will resume the purchase of soybeans, but to implement it on world markets is difficult because the nearest two months will continue the downward trend in soybean prices.
Cancellation of VAT reimbursement during export of soybeans will stop the supply of soybeans from Ukraine to world markets in the new season and will lead to a drop in purchase prices. Most manufacturers instead of soy will give preference to the cultivation of maize.
in Recent years, Ukraine has increased the acreage under soybean, but in the 2017/18 season, they decreased slightly.