Supply of defense products are exempted from the VAT regardless of who makes payment and from what sources the purchase is financed. This clarification is contained in the new General Tax Consultation, approved by Order of the Ministry of Finance of Ukraine № 314 as of 12.06.2026.

Document was prepared based on results of a generalization of practical aspects that arose among the taxpayers during application of preferential VAT taxation regime for defense products and is designed to ensure a unified approach to the application of tax legislation.

Consultation clearly states: right to the VAT exemption does not depend on who pays for the products. The key condition is that the products comply with legislative requirements and are used for defense purposes.

Text of the General Tax Consultation № 314 can be found at the link:

https://tax.gov.ua/zakonodavstvo/podatkove-zakonodavstvo/uzagalnyuyuchi-podatkovi-konsultatsii/80186.html.