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Research by Country/Region January 19, 2018  
UKRAINE: CUSTOMS, TAXES and DOCUMENTATION REQUIREMENTS for IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
NO
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
The software importing company must have an import license, valid contract and invoice. Although computer imports require a valid contract and license, no import license is required.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
Duties are assessed on the medium on which the software is presented, times the number of medium units (i.e. CDs, diskettes etc.).

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
Taxes are assessed on the medium on which the software is presented, times the number of medium units (i.e. CDs, diskettes etc.).

Is customized software treated differently than packaged software?
No.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
If an update is sent at a later date, it is treated as an individual product. It is recommended that exporters not include the price of the update in the original invoice to avoid being charged duties and taxes twice.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
Software licenses are classified as services and thus are not classified in the HS. Only if the IPR owner submits a special request, the software license will be registered in a special registration list prepared by State Customs Service.

Are import duties/taxes applied? If so, on what cost/price base are they levied?
No customs duties apply, although if licenses are imported along with software product, taxes and duties are applied on the total amount of the invoice.

Are withholding or other additional taxes applied on software licenses? If yes, how?
When imported separately from software media, software licenses are subject to 20% VAT tax based on the invoice amount.

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
Local IPR laws pertain.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
No import taxes/duties are applied to software delivered to the end-user over the Internet. However, if a resident company procures software over the Internet, this transaction is taxed as a regular commercial transaction based on the contract and the invoice amount.

Would the situation be different if this software were instead delivered to a distributor who has a license to produce (replicate) and sell the software?

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
A valid contract and invoice are required.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
No.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
These services are taxed based on relevant procurement contract and invoice amount. They are subject to 20% VAT. Customs duties do not apply.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
Yes.

Are special visa, work permits, and/or professional certification by an accredited body required?
No special visas, work permits, or professional certification are required.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes. Ukrainian tax legislation and customs procedures do not differentiate between new, refurbished or used computers. Thereof, all procedures, taxes, and customs fees applied to imports of new computer hardware, parts and accessories apply to refurbished and used computer hardware, parts and accessories.

If so, what are the documentation requirements?
Ukrainian tax legislation and customs procedures do not differentiate between new, refurbished or used computers. Thereof, all procedures, taxes, and customs fees applied to imports of new computer hardware, parts and accessories apply to refurbished and used computer hardware, parts and accessories.

Is special labeling required?
No special labeling is required.

What value should be shown on the invoice?
The value of the equipment. Justification on the invoice (or in the contract) may be required to explain the low invoice value (i.e. that the shipment is refurbished equipment). Otherwise, customs agents may suspect an illegal transaction and stop the shipment

How are duties and taxes assessed?
The same as they are assessed for imports of new computer hardware, parts and accessories.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished equipment. See answers above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
All re-imported equipment is dutied and taxed as a regular import.

How should the commercial invoice appear?
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Kiev, Ukraine, in January 2003. For further clarification please contact:
Ruben Beliaev
Commercial Specialist
U.S. Embassy, Kiev
ruben.beliaev@mail.doc.gov

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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