Imported energy efficient equipment is now exempt from VAT
In effort to encourage local businesses and coal producing plants to save energy, Ukraine added energy efficient equipment and materials to the list of goods exempt from import tax and VAT.
With this tax exemption, Ukraine officials attempt to create an environment with favorable conditions for conducting business in the country. The tax break includes software, green energy, agricultural venture that make use of energy efficient technology.
The 2013 World Bank Doing Business report stated an improvement of the investment environment in Ukraine. Ukraine and Poland were the two Central and Eastern European countries to have showed the most improvement in providing an environment for doing business. Through out 2011, Ukraine has made it easier for entrepreneurs by simplifying fiscal procedures, and improving property registering procedures.
Ukraine started to work on the efficiency of its energy system by adopting the State Programme on Energy Efficiency, which plans for a reduction of domestic energy consumption by increasing energy efficiency, developing national gas reserves, introducing ecological green energy production, and diversify gas suppliers.
The mission of the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEEESU) is to implement energy efficient measures through out the country. The agency held a seminar on the use of white certificates on November 15, 2012. Alice Jubeau, a Twinning project from France, lectured on the use of such papers. She put an emphasis on the fact that the state needed to foster an environment that would allow the white certificates system to be efficient.
White certificates are issued to confirming that an entity has reduced its energy consumption, which in turn allows to monitor the effectiveness of energy conservative measures.
On November 8, 2012, a report released by SAEEESU shows that the average Ukrainian uses roughly three times the amount of energy a EU citizen does, and that Ukraine needed USD 40 billion to modernize its energy sector.