The agreement between the Government of the Kyrgyz Republic and the Government of Ukraine on the principles of collection of indirect taxes during the exporting and commodity import (works, services)

of October 16, 1997

The government of the Kyrgyz Republic and the Government of Ukraine, the hereinafter referred to as Contracting Parties, aiming at further deepening of integration of economy, creation of equal opportunities for business entities and to establishment of conditions for fair competition, being guided by the commonly accepted regulations and rules of international trade,

agreed as follows:

Article 1 General determinations

For the purpose of this agreement:

a) the term "indirect taxes" means the value added tax and excise (the excise tax or the excise duty),

b) the term "zero rate" means taxation on value added at the rate of 0% that is established by the tax legislation of Contracting Parties,

c) the term "competent authorities" means the Ministries of Finance of Contracting Parties.

The article 2 Principle of Collection when exporting

1. One Contracting Party will not assess with indirect taxes goods (works, services) exported on the territory of other Contracting Party.

2. The rule of Item 1 of this Article, concerning the value added tax, means application of zero rate.

The article 3 Principle of Collection when importing

1. The goods imported on the territory of one Contracting Party (work, service) which are exported from the territory of other Contracting Party, are assessed with indirect taxes in the country of the importer according to its legislation. Taxation will be performed by the customs authorities or bodies determined by the national legal system in case of commodity importation on customs area of this Contracting Party.

2. In case of commodity import taxation (works, services) exported from the territory of other Contracting Party, Contracting Parties will apply the same rates of taxes which are established for the similar goods (works, services) made (implemented) in their domestic market.

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