In Ukraine, funerals may become significantly more expensive, deputies of the Verkhovna Rada have proposed a legislative project that provides for the introduction of value added tax (VAT) on funeral services. The initiative has already caused a significant response in society, as it may lead to a significant increase in the price of such services for Ukrainians.
Ukrainian deputies have initiated a draft law that provides for the imposition of value-added tax (VAT) on state and communal ritual services.
This is stated in the draft law No. 12189 "On Amendments to the Tax Code of Ukraine regarding the peculiarities of taxation of providers of ritual services", which was registered in the parliament on November 8.
If the law is passed, funeral services and funeral goods provided by public and utility companies will no longer be exempt from VAT, which is likely to increase the cost of funerals.
The project also cancels the possibility for providers of funeral services to use a simplified system of taxation, accounting and reporting, which will increase the tax pressure on companies in this area.
These changes are proposed together with a draft law aimed at reforming the funeral services market and demonopolizing the sector. The explanatory note notes that the innovations will help create a competitive environment where private businesses can open cemeteries, crematoria and columbariums, and will ensure a level playing field for all taxpayers.
According to the authors of the document, the reform aims to bring the field of burial in line with the requirements of the market economy, but in practice it will make burial more expensive for the population.
