Ukraine Expands VAT Relief for Defence Imports and Domestic Production

• Ukraine’s Law No. 4967-IX exempts imports of all-terrain vehicles for the Security and Defence Forces from VAT and excise duty. 

• The law also provides VAT relief for imported components used in the domestic production of weapons, drones, electronic-warfare equipment and ammunition. 

• The measure standardises access to defence-related tax benefits irrespective of the source of procurement funding. 

Extended article 

Ukraine has enacted Law No. 4967-IX to broaden tax relief for defence-related imports and production. The law exempts the import of all-terrain vehicles intended for the Security and Defence Forces from VAT and excise duty. It also exempts from VAT imported components used for domestic production of weapons, unmanned aerial vehicles, electronic-warfare equipment and ammunition. 

The legislation also standardises the application of tax benefits for defence procurement regardless of the source of funding. Businesses involved in relevant supply chains should verify that the goods, importer, recipient and intended use satisfy the statutory conditions and retain supporting customs and transaction documentation. 

External sources: Read the Ukrainian State Tax Service publication | Review the signed-law summary 

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