The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Tax Code of Ukraine regarding Support and Enhancement of International Competitiveness of Video and Film Production Industry” No. 821-ІХ dated July 21, 2020.
The law amends and additions to paragraph 186.3 of Art. 186 of the Tax Code of Ukraine, which exempt from VAT taxation in Ukraine export of services for the production and layout of video, film, animation (animated) films, television programs, commercials, photographic advertising materials, computer graphics.
Also, the law returned to the Tax Code the regulation, which excludes subsidies for the return of the qualified expenses provided for by the Law “On State Support of Cinematography in Ukraine”, from the list of taxable incomes of non-residents in Ukraine. Thus, the document improves the conditions of provision of services for the production of film and video materials commissioned by non-residents, agrees them with the practice of European countries and thereby increases the competitiveness of production of such services in Ukraine.
Reducing the cost of film and video production services for foreign companies will contribute to the development of this industry in Ukraine, the development and growth of the national economy due to the growth of related industries: hotel and restaurant business, transport, financial, legal services, related services of other branches of the creative industry, as well as the development of tourism and strengthening the tourist attractiveness of Ukraine.
It will also have a positive impact on the popularization and improvement of Ukraine's image in the world, in particular, in order to enhance its investment attractiveness in other sectors of the economy.
Source: Official website of the President of Ukraine
Law of Ukraine “On Amendments to the Tax Code of Ukraine to Support and Enhance International Competitiveness of Video and Film Production”