Ukraine Clarifies Zero-Rating for Supplies of Defence Goods

Summary 

• Ukraine’s State Tax Service has clarified when the zero VAT rate applies to equipment, fuel and lubricants supplied for defence needs. 

• Eligibility depends on the goods, the recipient and the statutory conditions, including the categories identified in the Tax Code and Cabinet resolutions. 

• The listed recipients include specified armed forces, security, border, police, emergency and other state bodies and budget-funded organisations. 

Extended article 

Ukraine’s State Tax Service has clarified the application of the zero VAT rate to supplies of equipment, fuel and lubricants for defence purposes. Article 195.1.2(g) of the Tax Code covers qualifying supplies for fuelling, refuelling or provisioning military ground transport and other qualifying contingents, as well as other cases provided by legislation. 

The clarification refers to specified defence-related goods such as spare parts, batteries, tyres, coolants, components, additional equipment, fuel and lubricants. Application of the zero rate requires the transaction, goods and recipient to fall within the legal framework. Suppliers should retain evidence supporting the product classification, eligible customer and defence purpose rather than relying only on the commercial description of the goods. 

External sources: Read the State Tax Service explanation of defence VAT relief 

---

---