On 21 May 2014, the Cabinet ofMinisters of Ukraine adopted the Resolution* on issuing VAT bonds. The officialtext is not available yet, but according to the press release of the Cabinet ofMinisters, the key provisions are:
 - The term of circulation of VAT bonds is 5 years.
 - The VAT bonds will be redeemed every 6 months in the amount of 10% ofthe bond’s nominal value.
 - Nominal value of a VAT bond is UAH 1,000.
 - Interest on bonds is set at the level of the discount rate of theNational Bank of Ukraine (currently 9.5%).
As a reminder, based on the State Budget Law for 2014, VAT bonds will cover VATrefunds claimed prior to 1 January 2014.
We will continue monitoring this issue and keep you updated on furtherdevelopments in this area.

*Resolution“On Issuance of Internal Governmental Bonds for VAT Refund” dated 21 May 2014

 
Contacts:

Ron Barden,Partner & TLS Leader, ron.j.barden@ua.pwc.com
Rob Shantz, Legal Partner, rob.shantz@ua.pwc.com
Slava Vlasov, Partner, Tax and Legal Services, slava.vlasov@ua.pwc.com
ViktoriaTymoshenko,Senior manager, Tax and Legal Services, viktoria.tymoshenko@ua.pwc.com

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