TAXATION OF AGRICULTURAL PRODUCTS EXPORT TO EU COUNTRIES

Abstract

Summary. The purpose of the article is to highlight the features of taxation of agricultural exports to EU countries and to determine its impact on export volumes and financial results of Ukrainian agricultural enterprises.
The article describes changes in export taxation. Import duties for Ukrainian agricultural products are expected to decrease from 6.5% to 2.1% on average, and EU import duties from 3.7% to 0%.
Exports to EU countries increased from $ 13 billion to $ 20 billion in 2016-2018 - that is, 49%. Agriculture and food products account for about a third of Ukraine's exports to the EU (31.8% of total EU exports). In 2018, EU countries accounted for 42.6% of Ukrainian exports (US $ 20 billion out of a total of $ 47 billion).
There are non-tariff means of regulating foreign trade by the EU, which have a significant impact on the agricultural sector of the economy. There are 36 categories of goods to which the EU applies tariff quotas, including: a range of animal products (meat, honey); products of vegetable origin (grain, mushrooms, garlic); prepared foods (sugar, juice, processed tomatoes), ethanol and cigarettes.
The forecast of profit increase for agricultural enterprise from introduction of wheat export to EU countries is substantiated. The factors that favor the entry of Ukrainian agricultural enterprises into the European market and the constraints are given.
Conclusions. As a result of the implementation of the Association Agreement between Ukraine and the EU, there has been a bilateral reduction of customs duties, resulting in an increase in exports and imports. In these circumstances, agricultural enterprises have the opportunity to improve their financial results by reducing the tax burden, higher prices for agricultural products in the EU, the ability to obtain budgetary VAT refunds.