The Ministry of economical development and trade has suggested canceling VAT in operations with scrap metal, as well as the income tax when submitting scrap.
The ministry suggests canceling VAT for good, instead of making amendments to the state budget on annual basis, as it is done now. Thus VAT will not be imposed on scrap trading operations from January 1, 2017. The ministry believes that restoration of VAT will lead to scrap price increase, decrease competitiveness of Ukrainian metal companies and worsen their state. (Ukrainian metal)