In March 2015 Ukraine began allowing state procurement of certain medicines and medical devices to be conducted via international organizations such as WHO, UNICEF, and a number of other highly reputable institutions. This is anticipated to dramatically reduce corruption in medicine procurement and thus should lead to a decrease of the value of certain medicines and devices for Ukrainian patients.
Following such promising changes, Ukraine has recently adopted the Law No. 332 as of 9 April 2015 which established a temporary exemption from 7% VAT and 5% additional import duty to apply to the following transactions:
- import of medicines and medical devices on the customs territory of Ukraine and first supply of such medicines and devices;
- first supply of medicines by Ukrainian producers of medicines and medical devices; and
- supply (transfer) of medicines and medical devices to final consumers (patients).
The above exemption applies solely when medicines and medical devices are imported and/or supplied on the basis of agreements with qualified international procurement agencies and shall apply until March 31, 2019.
The Law came into force on 7 May 2015, however, the exemption cannot be currently be applied until a Regulation is issued by the Cabinet of Ministers of Ukraine to establish the list of medicines and medical devices allowed for state procurement via international agencies.