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LETTER OF THE STATE TAX SERVICE OF UKRAINE

of August 1, 2012 No. 20820/7/15-2117

Concerning collection for special use of water

The procedure for collection of collection for special use of water in 2012 is regulated by the Section XVI of the Tax code of Ukraine (further - the Tax code).

According to Item 323.1 of the Tax code payers of collection for special use of water are managing vodopolzovatelisubjekta irrespective of pattern of ownership: legal entities, their branches, departments, representations, other separate divisions without formation of legal entity (except budgetary institutions), permanent missions of nonresidents, and also physical persons - entrepreneurs who use the water received by fence drive from water objects (primary water users) and/or from primary or other water users (secondary water users), and use water for requirements of hydropower, water transport and fish breeding.

According to Item 94 of the Law of Ukraine of May 24, 2012 No. 4834-VI "About introduction of amendments to the Tax Code of Ukraine concerning enhancement of some tax regulations" (further - the Law No. 4834) article 323 of the Tax Code is added with new Item 323. According to which 2, water users who use water only for satisfaction of drinking and sanitary and hygienic requirements of the population (set of people which are in this territory during this or that period of time, irrespective of nature and duration of accommodation, within their housing stock and personal plots), including for satisfaction of exclusively own drinking and sanitary and hygienic needs of legal entities, physical litspredprinimatel and payers of the single tax are not payers of collection.

For the purposes of this Section it is necessary to understand use of water as the term "sanitary and hygienic requirements" in toilet, shower, bathrooms and wash basins and use for content of rooms in proper sanitary and hygienic condition.

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