Fight against “black grain”: the President of Ukraine signed the law

Volodymyr Zelenskyy signed the law No. 10168-2 on the fight against “black grain” and the non-return of foreign currency extortion.

This is stated on the website of the Verkhovna Rada of Ukraine.

The law gives the Cabinet of Ministers the right to launch mechanisms that minimize opportunities for abuse during the export of agricultural products.

This should ensure greater foreign exchange revenues for the state and positively affect the stability of the national currency. For example, the government can introduce an export support regime for certain types of goods, mostly agricultural products.

Within this regime, it will be prohibited to export goods to foreign economic entities (legal entities and individuals, as well as structural units engaged in foreign economic activity) who are not VAT payers.

It is also prohibited to export such goods at prices lower than the minimum permissible export prices (prices will be determined by the Ministry of Agrarian Policy).

Read also: Minimum export prices for grain will be determined in Ukraine every month.

Before exporting such goods, the payer must register a tax invoice at the following rates:

• 0% — payers whose amount of unreturned foreign exchange does not exceed 20% (the order of calculation of such an indicator will be determined by the Cabinet of Ministers);

• 14 or 20% (at the rate for domestic supply of the corresponding product) — all other payers.

Such payers will be able to adjust the VAT rate to 0% only after the tax office receives information from the bank about the completion of calculations for the relevant export operation.

“Currently, grain and oilseeds are the main items of export, in particular, according to the initiative for safe transportation of grain and food products from Ukrainian ports. Therefore, it is extremely important for Ukraine to create all possible safeguards to prevent abuses and fraudulent schemes in this area, so that according to the results of the export of grain to Ukraine

currency, which is necessary to support our economy, came in,” the explanatory note to the draft law says.

It should be noted that “black grain” refers to products that traders bought from farmers for cash and exported abroad. If the grain is bought for cash, no taxes are paid in the process of its production. In addition, such grain is often sold through fictitious one-day firms.

Previously, USM reported that, according to Bureau of Economic Security, by the end of 2023, “black” grain exports from Ukraine exceeded 20%.