VAT Zero Rate for Military Vehicle Repairs: When It Applies to Spare Parts

Vehicle repair and maintenance services for the Ukrainian Armed Forces are taxed at the standard 20% VAT rate.
Zero VAT applies only to goods (e.g., spare parts, batteries, tires, fluids, accessories) supplied directly to eligible military entities under Resolution No. 178.
If spare parts are included in the price of a repair service, the whole operation is treated as one service and taxed at 20% VAT.
A 0% VAT rate for spare parts is possible only if they are documented as a separate supply of goods, distinct from the repair service.
The tax authority’s guidance helps businesses support the military while avoiding VAT penalties by correctly splitting services and goods in contracts and invoices.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.