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Benefits for defence sector: Parliament passes laws exempting imports of defence goods from VAT

Drone Industry

VAT exemptions for defence: Parliament abolishes tax on imports of drones, electronic warfare equipment and technology

The Verkhovna Rada adopted bills No. 14169 and No. 14170, which exempt imports of goods for the production of drones, electronic warfare, demining, and combat simulators from VAT. The exemptions are valid until 2027–2029.

According to Censor.NET, this was announced by MP Yaroslav Zheleznyak.

"The Rada adopted our draft laws #14169 and #14170, co-authored by Roman Kostenko, Danylo Getmantsev and myself, exempting from VAT transactions involving the import of goods intended for security and defence," the statement said.

Zhelezniak noted that 272 MPs voted in favour.

VAT exemptions:

  • applies to goods for the production/modernisation of drones (UAVs), demining machines, electronic warfare (EW) equipment, etc.
  • The import of combat simulators will also be VAT-free.
  • The issue of writing off destroyed/rejected parts is being clarified.
  • Manufacturers will be able to sell imported but unused goods without penalties.

An extension of the exemptions has also been provided for:

  • until 2027 - for UAVs, sights, thermal imagers, etc.;
  • until 2029 for wind turbines and renewable energy equipment.

What preceded this?

The day before,the Verkhovna Rada passed the law "On the State Budget of Ukraine for 2026." The corresponding bill No. 14000 was supported by 261 MPs in the second reading, taking into account the proposals of the parliamentary committee. A total of 257 MPs voted in favour of the bill.