The Ukrainian Energy Exchange (UEEX) switches to natural gas trading without VAT from June 1.
The UEEX has said this in a statement, Ukrainian News Agency reports.
"Responding to the requests of market participants, the Ukrainian Energy Exchange has made changes to the functionality of trading systems in the Natural Gas direction, the purpose of which is to display the price and value of goods without VAT. Now the price of the exchange wholesale market, which is represented by the long-term, medium-term and short-term natural gas market of the UEEX, will correlate with the prices of European markets and to a greater extent comply with the established international practices, according to which the wholesale energy market trades tax-free," the statement says.
Thus, starting from June 1, when entering the volume and price of bids, bidders must indicate the bid price in thousand cubic meters without VAT.
"The technical transition to trading without VAT will provide better market comparability, but the main work on changing tax legislation will be ahead of us if we strive to integrate our markets with European ones, because wholesale energy markets are traded without VAT. We have adjusted the trading systems in order to provide a convenient trading process for market participants. For informational purposes, the publication of order prices with VAT was also left in the Energy Trading Platform software product. In addition, the user screen of the Energy Trading Platform software was also improved in order to add services to improve convenience trade," UEEX Director General Oleksandr Kovalenko was quoted as saying.
As Ukrainian News Agency earlier reported, the Ministry of Economy states that the average customs value of natural gas imported by Ukraine in April, formed during its customs clearance when imported into Ukraine, decreased by 5.9% or USD 77.45 per thousand cubic meters to USD 1,228.27 per thousand cubic meters compared to March (USD 1,305.72 per thousand cubic meters).
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