Parliament supports measures to exempt defense goods from VAT, customs duties

The Verkhovna Rada, Ukraine's parliament, has supported a measure to exempt security and defense goods from both value-added tax (VAT) and customs duties, lawmaker Yaroslav Zheleznyak reported on April 10.

The measure includes exempting VAT for imported goods intended for the Ministry of Defense, Armed Forces, and other defense-related entities from outside Ukraine's customs territory.

Additionally, the measure suggests VAT exemption for transactions involving military software services subject to state control during international transfer.

The parliament adopted two bills on Feb. 6 abolishing VAT and customs duties specifically regarding the import of drones, thermal imagers, collimators, night vision devices, and walkie-talkies.

The mass use of drones makes it possible for Ukraine's military to advance more quickly during offensive actions and significantly reduce Russia's combat potential.

VAT and customs duties were temporarily suspended in November 2022 for generators and charging stations to allow Ukrainians to buy them at an affordable price and survive the winter during Russia’s mass missile strikes on Ukraine's energy infrastructure.

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Kyiv IndependentAsami Terajima