The Verkhovna Rada Committee on Agrarian Policy and Land Relations recommends that the parliament support the amendments to Article 5 of the Law of Ukraine "On Value Added Tax" (regarding operations for settlements with the budget in non-monetary form) submitted by People's Deputy Vasyl Shpak. \naccording to the Information Department of the Ukrainian parliament, the draft law proposes introducing changes to the procedure for calculating and paying value added tax during operations involving the transfer to state ownership and subsequent transfer to financial leasing of agricultural machinery of foreign manufacture. \nUnder the current taxation system for VAT, agricultural producers incur tax liabilities when transferring machinery to state ownership, while NAK "Ukrahrolizynh," which receives this machinery, acquires the right to a tax credit. \nThe author justifies the need to adopt the draft law by the absence of revenue inflows to the State Budget of Ukraine from the application of value added tax to operations for settlements with the State Budget in non-monetary form and the subsequent transfer to leasing of machinery transferred to state ownership as repayment of debt to the State Budget on loans. \nExemption from value added tax payment during settlements in non-monetary form, as defined by Article 51 of the Law of Ukraine "On the State Budget of Ukraine for 2004," according to the People's Deputies, will contribute to the fulfillment of the revenue part of the State Budget. \n