The law was adopted on March 30, 2020 at the extraordinary meeting of the Verkhovna Rada of Ukraine held on April 02, 2020.

The law provides for the improvement of legal relations in many life spheres that were affected by the COVID-19 outbreak.

Corresponding amendments have been made to the: Tax Code, Customs Code, Civil Code, Labor Code of Ukraine, Code of Administrative Offences of Ukraine, Laws of Ukraine “On Employment of the Population”, “On Banks and Banking Activity”, “On Education”, “On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Spirits, Alcoholic Beverages, Tobacco, and Fuel” and several other legal acts. 

The amendments include: support for employees and employers during the COVID-19 outbreak; grounds for prolongation of the procedural time limits set by the court or by the law have been expanded; simplification of manufacture of products necessary to prevent the spread of COVID-19; welfare payments are ensured, the period of application for welfare payment and the term of welfare payment were extended; submission of reports, statistical information to supervisory authorities, etc., was postponed.

Due to the adoption of the Law, the changes in the regulation of the medical devices market are expected.

The Law provides for the state price control for medical devices, disinfectants and personal protective equipment during the quarantine. 

1. 1. The Cabinet of Ministers of Ukraine shall ensure, according to the requirements of the Law of Ukraine “On Prices and Pricing”, the state regulation of prices for pharmaceutical products, medical and anti-epidemic products, as well as goods of significant social importance, and to adopt laws and regulations necessary for implementation of the Law.

The Cabinet of Ministers of Ukraine received a number of new powers in view of the amendments made: 

• To develop and approve a list of anti-epidemic products necessary to prevent the spread of epidemics, pandemics, including the spread of coronavirus disease (COVID-2019);
• To develop and approve a list of goods that have significant social importance;
• To establish maximum prices for wholesale and retail trade of anti-epidemic products necessary to prevent the spread of epidemics, pandemics, including the spread of coronavirus disease (COVID-2019), and/or goods of significant social importance, taking into account distribution and logistical extra charges, and maximum (retail) markup. 
• To prohibit buying and reselling at prices exceeding the established maximum prices for wholesale and retail trade, taking into account distribution and logistical extra charges, and maximum (retail) markup, of the anti-epidemic products necessary to prevent the spread of epidemics, pandemics and/or goods of significant social importance, during the quarantine introduced by the Cabinet of Ministers of Ukraine 

1. 1. The Law amended the Tax Code of Ukraine.
      1. For the period from March 17, 2020 and until the last day of the month when CMU introduced the quarantine throughout the territory of Ukraine in order to prevent the spread of COVID-19, importation into the customs territory of Ukraine and/or supply in the customs territory of Ukraine of goods (including pharmaceutical products, medical devices and/or medical equipment) necessary for the implementation of measures aimed at prevention of the occurrence and spread, localization and elimination of outbreaks, epidemics and COVID-19), shall be exempt from VAT taxation, according to the list approved by the Cabinet of Ministers of Ukraine.
      2.  Moratorium on inspections was imposed for the period from March 18, 2020 to May 31, 2020, with the exception of:

• unscheduled documentary audits on the grounds of the legality of the declared VAT recoverable from the budget and/or negative VAT value of more than 100,000 Ukrainian hryvnias;
• factual inspections regarding violation of the requirements of the legislation on production, circulation, licensing, etc., of ethyl alcohol, alcoholic beverages and tobacco;

1. 1. Temporarily, until June 30, 2020, it is prohibited to carry out routine state supervision (control) activities by the state supervision (control) authorities in the sphere of economic activity other than the state supervision (control):

• for activities of business entities that are classified as high-risk business entities;
• regarding compliance with the requirements for the formation, fixing and application of state regulated prices;
• in the field of sanitary and epidemiological welfare of the population.

1. 1. The Law amended the Customs Code of Ukraine

• pharmaceutical products, medical devices and/or medical equipment necessary for the  implementation of measures aimed at prevention of the occurrence and spread, localization and elimination of outbreaks, epidemics and pandemics of coronavirus disease (COVID-19) shall be exempt from import duties until June 30, 2020 according to the list approved by the Cabinet of Ministers of Ukraine;
• customs clearance of such products shall be carried out in the first instance;
• payment for customs formalities carried out outside the customs offices or during non-working hours shall not be charged with respect to such products;

1. 1. The Law amended the Law of Ukraine “On Prices and Pricing” in respect of tougher administrative and economic sanction for business entities:

• for submission of inaccurate information to the authorized bodies – fine in the amount of 1000 (previously 100) tax-free minimum incomes of an individual;
• failure to comply with the requirements of the authorized bodies or obstructing the performance of their duties – fine in the amount of 2000 (previously 200) tax-free minimum incomes of an individual.

Tax-free minimum income of an individual (TFMII) is 17 Ukrainian hryvnias in 2020.

1. 1. The Law amended the Code of Administrative Offences of Ukraine concerning the violation of the procedure of formation and application of prices and tariffs.

• Violation of the procedure of formation, fixing and application of prices and tariffs, as well as discounts, markups, surcharges thereto –

entails the imposition of a fine for citizens in the amount of 100 tax-free minimum incomes of an individual and for officials – 150 tax-free minimum incomes of an individual (previously from 5 to 10 TFMII for officials).

• The same acts committed by a person who has been subjected to administrative penalties regarding any offense(s) referred to in part one of this article during the year, –

entails the imposition of a fine for citizens in the amount of 150 tax-free minimum incomes of an individual and for officials – 200 tax-free minimum incomes of an individual (previously from 10 to 15 TFMII).

• The acts set forth in part one of this article, committed during the quarantine introduced by the Cabinet of Ministers of Ukraine for the anti-epidemic products necessary to prevent the spread of epidemics, pandemics, including the spread of coronavirus disease (COVID-2019) and/or goods of significant social importance, according to the list approved by the Cabinet of Ministers of Ukraine, if the price exceeds 1.2 times the maximum price determined by the Cabinet of Ministers of Ukraine for such goods –

entails the imposition of a fine for citizens in the amount of 200-250 tax-free minimum incomes of an individual and for officials – 250-300 tax-free minimum incomes of an individual.