KIEV, July 23 – The Income and Tax Ministry has called for value-added tax to be reduced from 17% to 9% as of January 1, 2014, and tax on sales at a rate of 1% and 2% be simultaneously introduced as compensation.

"Once introduced, these measures are to boost budget receipts by about UAH 22 billion," reads an explanatory note posted on the ministry's Web site.

Standards for accounting revenues and expenses will be similar to norms of calculating tax liabilities and tax credits on VAT through the cancellation of the "first event" [payment or delivery] rule and introducing the accrual method. Thus, accounting source documents and tax accounting ones (VAT invoices) will be unified. In addition, it will make the VAT tax reporting procedure simpler.