Ukrainian parliament exempts defense products from VAT
The Verkhovna Rada, Ukraine’s parliament, on Tuesday made changes to the Tax Code, abolishing the imposition of value added tax (VAT) on imports of certain products for defense purposes.
According to UNIAN’s correspondent in the Rada, 274 deputies supported this, with minimum number of votes necessary for the measure to pass being 226.
It is noted in the law that VAT exemption does not apply to defense products manufactured in a state that is recognized as the aggressor or occupier in relation to Ukraine.
"Also, the law does not apply to goods which are imported from territories that are temporarily occupied and are under any customs regime."
The law states that the definition of "occupied territory" also applies to the Russian-occupied Autonomous Republic of Crimea, and therefore, the provisions of the law do not apply to imports of defense goods from Crimea.
According to the explanatory note, the adoption of the law "will resolve the issue of tax-free import of defense products, including for the needs of ATO, to the territory of Ukraine."