Tax benefits for products necessary for Ukraine’s defense have been expanded

Press service of the State Tax Service of Ukraine, published 05 October 2026 at 16:04 Chapter: News

From September 17, 2026, new tax benefits will be in effect for certain products used for needs of the security and defense forces of Ukraine. These particularly include products for production of weapons, military and special equipment, as well as certain vehicles, weapons and ammunition.

Changes are provided for by the Law of Ukraine № 4967-IX as of 03.09.2026.

What new benefits does the law provide?

1. Certain defense products for production of weapons and military equipment can be imported without the VAT.

VAT exemption applies to product import specified in Part 8 Article 287 of the Customs Code of Ukraine, if they are imported by taxpayers for use in their own production activities for production of weapons, military and special equipment, weapons and ammunition.

In particular, these are products used for production of unmanned systems, electronic warfare and reconnaissance equipment, active means of countering technical intelligence, multi-channel optoelectronic systems and optoelectronic devices.

Benefit is applied provided that the final recipient of such products is determined to be relevant entities of the security and defense sector and products received without prior or subsequent reimbursement of their cost by the final recipient.

2. ATVs and motorized all-terrain vehicles have been added to the list of defense products eligible for preferential treatment.

List of defense products, import and supply of which are exempted from the VAT for a period of martial law, has been expanded.

Quads and ATVs classified under Ukrainian classification of the foreign economic activity products codes 8703, 8704 have been added to it.

Benefit applies provided that the final recipient of such products, according to the end-user certificate or terms of the contract, are entities specified in Sub-paragraph 5 of Paragraph 32 Sub-section 2 Section XX of the Tax Code of Ukraine.

3. List of weapons and ammunition, supply of which is exempted from the VAT, has been expanded.

In particular, the list includes weapons and ammunition classified under commodity heading 9301, commodity subcategories 9306 30 10 00, 9306 30 30 00, 9306 90 10 00 according to Ukrainian classification of the foreign economic activity products.

Benefit is possible subject to compliance with all requirements specified in Paragraph 99¹ Sub-section 2 Section XX of the Tax Code of Ukraine.

For reference.

Law of Ukraine № 4967-IX as of 03.09.2026 “On amendments to the Tax Code of Ukraine regarding exemption from taxation of certain products for the needs of security and defense forces” entered into force on 17.09.2026.