According to the Regulation № 2010-6/14 about using of legislation of taxes and duties on the territory of the Republic of Crimea in the transition period ( hereinafter – Regulation), which was adopted by the Government of the Republic of Crimea on the 11^th of April 2014 were set the following tax rules for the "transition period" - till 01.01.2015:

1. All inhabitants of the Crimea, which on the 18^th of March 2014 did not change the place of residence, ARE recognized tax residents of the Russian Federation.

2. For companies, the location of which is the territory of the Crimea, and to individual entrepreneurs which did not change the place of residence of the Republic of Crimea – is oblige to use the laws on taxes of Russia.

3. From  01.05.2014  in the territory of Crimea  will  be general VAT rate of the Russian Federation - 18% and preferential - 10% (for certain types of food products, children products,  medical products).

4 . Import of goods from mainland Ukraine into the territory of Crimea is subject to VAT at the rate of 18% (or 10 %).

5 . Import of goods from the territory of the Russian Federation to the territory of Crimea is not taxable with VAT and excise duty.

6.  Supply goods / services from the territory of the Crimea to the mainland of Ukraine IS subject for taxation with VAT at the rate of 0%.

The Regulation, namely tax rates, as well as their payment stipulated by the Regulation is directly contrary to the Tax Code of Ukraine.

However, the Law of Ukraine "About the rights and freedoms of citizens in the temporarily occupied territory of Crimea " (Act occupation) does not contain ANY economic part and ways HOW to regulate taxation, customs clearance of goods when they are imported / exported to/from Crimea, respectively, in terms of taxation, now cooperation with Crimea seems to be quite problematic.

http://www-ki.rada.crimea.ua/index.php/2014-04-03-07-29-46/14307-2014-04-16-05-46-10