Digest of changes from July 1: contract for the Armed Forces, new accounts for military tax, reservations, and social innovations

July 2026 marks a transition to a more flexible yet strict model of state governance. Legislative changes cover critical sectors: from the defense budget, which received additional support through international loans and tax redistribution. Some innovations are experimental, others are enshrined in laws and government decisions.

“Motivational contract” in the Armed Forces: up to UAH 460,000 per month

From July 1 (effective from June 1, 2026), an experimental project launches introducing contract service with increased financial incentives.

Different service terms are provided depending on the category:

• 10 months — for active military personnel
• 14 months — for conscripts and foreigners (with mandatory combat service)
• from 6 months — for veterans with combat experience

Financial support can reach up to UAH 460,000 per month, depending on participation in combat operations and performance indicators.

Additional payments are separately provided for combat missions, including for neutralizing enemy personnel and other results recorded in the prescribed manner.

After the contract ends, servicemen may be granted a deferral from mobilization for a period from 6 months to 3 years.

Military tax: 100% of funds — to a special fund for the Armed Forces

From July 1, the mechanism for crediting the military tax changes according to updated budget legislation.

Now:

• the military tax is directed to a special fund of the state budget
• 100% of the funds are used exclusively for the monetary support of the Armed Forces
• part of the revenues is also formed from customs payments on certain categories of military goods

Effectively, the model of targeted financing of defense expenditures changes.

From July 1, the details of budget accounts for paying the military tax completely change according to Law No. 4908-IX.

For all payers, including individual entrepreneurs and legal entities on the simplified taxation system, new accounts are opened for all classification codes. Before paying taxes, it is mandatory to check the new IBAN accounts in the Taxpayer's Electronic Cabinet or on the State Tax Service website to avoid tax debt due to payment to old details.

EU strengthens parcel control: new customs rules

From July 1, new customs clearance rules for international shipments to the EU are introduced.

Provided:

• an additional fee of 3 EUR for each product item (HS code) in the parcel
• use of the IOSS system as the basic tax payment mechanism

Thus, the delivery cost will depend on the shipment structure and the number of product items.

For each separate product sub-item (HS code) in the declaration, a temporary duty of 3 EUR is charged. If the parcel contains a smartphone, charger, and headphones — these are three different items, which means a 9 EUR fee.

Reservation and Labor Inspection control

By July 1, authorities had to analyze the compliance of enterprises with the status of “critically important.” From July, enterprises that fail the objectivity check may lose the right to reservation.

For reserving employees in combat zones, the requirement is set: salary not less than the minimum wage multiplied by a coefficient of 2.5 (or 3 for certain categories).

The Labor Inspection begins checks of the workplace norm for persons with disabilities, using data from the Pension Fund. The Cabinet of Ministers adopted Resolution No. 659, which approves a new Procedure for monitoring compliance with the workplace norm. The document defines how the Labor Inspection will check employers and the rights and obligations of the parties during such inspections.

Agricultural sector: export through SAR

From July 1, mandatory verification through the State Agricultural Register (SAR) starts for rapeseed exporters. The maximum export volume is up to 5 tons per 1 hectare of land.

July 2 is the deadline for submitting applications to SAR to receive up to UAH 1 million interest-free loans for farmers.

Social rights: pensions, IDPs, and "eOselya"

On July 1, the Verkhovna Rada adopted the basic Law No. 12301, which updates the legal status of internally displaced persons (IDPs). The document provides for the introduction of an electronic IDP cabinet to simplify access to state services and data accounting.

The law separately guarantees pension provision for IDPs on general grounds without additional restrictions, removing previous administrative barriers to payments.

At the same time, the state affordable housing program “eOselya” is expanded. Preferential mortgages with a 3% rate now apply to:

• veterans and combatants
• family members of deceased servicemen

The program expansion aims to strengthen social guarantees and provide housing for the most vulnerable categories of citizens affected by the war.

Also, from July 1, the next stage of automatic pension recalculation begins in Ukraine, covering certain categories of pensioners. Changes are related to updating the subsistence minimum and adjusting allowances linked to basic social standards.

Fuel market and simplified legalization of foreigners

From July 1, updated regulatory requirements are introduced in Ukraine in the fuel sector and the migration status of foreigners.

In the retail fuel sector at gas stations, a European system of marking gasoline and diesel fuel is introduced. In particular, the designations E5, E10, B7, B10 are applied, reflecting the share of biocomponents in the fuel composition. The purpose of the changes is to unify labeling with European standards and increase transparency for consumers.

At the same time, migration changes come into force for foreigners involved in humanitarian and volunteer activities. Law No. 4816-IX provides for the possibility of simplified legalization of stay in Ukraine for 60 days for volunteers and employees of international humanitarian organizations.

The new mechanism aims to regulate the legal status of foreigners who effectively participate in humanitarian and recovery programs during martial law.

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