Ukraine Abolished VAT on the Supply of Ground Drones and Robotic Complexes for the Armed Forces of Ukraine
President Volodymyr Zelenskyy signed a law that exempts from VAT the supply of ground robotic complexes and ground unmanned systems for the needs of the Defense Forces of Ukraine No. 4894-IX (bill No. 15259).
The explanatory note to the law emphasizes that the shortage of ground robotic complexes significantly reduces the combat capabilities of Ukrainian units.
This decision is intended to accelerate the supply of ground drones for the Armed Forces of Ukraine, which are used for transporting ammunition, evacuating the wounded, reconnaissance, and performing engineering tasks in the combat zone.
Recall that on May 28, the Verkhovna Rada adopted law No. 15259, aimed at strengthening the provision of the Defense Forces with ground unmanned systems for transporting ammunition, evacuating the wounded, and conducting reconnaissance.
As the "Judicial and Legal Newspaper" wrote, the law provides for an addition to subsection 2 of section XX "Transitional Provisions" of the Tax Code of Ukraine with a new clause establishing that temporarily, until the termination or cancellation of martial law, operations for the supply of ground unmanned systems on the customs territory of Ukraine are exempt from VAT.
The benefit will apply to equipment classified under commodity groups 84, 85, 87, 90, 93 according to the Ukrainian classification of goods of foreign economic activity, provided that the defined criteria are met.
In particular, the VAT exemption will apply in cases where:
- the supply is made under state contracts (agreements) for defense procurement;
- the final recipient is designated entities of the security and defense sector — including the Ministry of Defense of Ukraine, the Armed Forces of Ukraine, other military formations, law enforcement agencies, volunteer territorial community formations, as well as other structures involved in ensuring national security and repelling the armed aggression of the Russian Federation.
Also, recipients may include enterprises that are contractors or co-contractors of state defense contracts.
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