Following the New Year and Orthodox Christmas holidays, a slight confusion regarding the calculation of scrap prices has developed in the Ukrainian domestic market.
Confusion was created as a result of the expiration of the amendment to the VAT-related law on January 1, 2008, according to which all scrap operations were exempted from VAT payments. Although, at the end of December 2007, the Ukrainian parliament adopted the national budget for 2008, including the zero VAT rate on scrap, no decree regarding the prolongation of the amendment on the VAT-related law has been passed. As a result, the Ukrainian steelmakers find themselves in a dilemma - whether to wait for the relevant law to be adopted or to continue to work according to last year's system, i.e. without VAT.