Ukraine Tax Agency Announces VAT Exemption on Operations for Defense Goods Supplied Under State Contracts

The Ukrainian State Fiscal Service Feb. 20 announced a VAT exemption on operations for the supply of defense goods carried out by enterprises under state contracts. The announcement includes that: 1) the goods must belong to defense categories defined under the law and classified under the Tax Code; 2) the enterprise must be the executor or co-executor of the contract and the purchaser a government customer; and 3) there is no additional VAT liability for the enterprise if it purchased goods or services with VAT and then uses them for VAT-exempt transactions. [Ukraine, State Fiscal Service, 02/20/25]

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