VAT benefits for transactions for persons with disabilities: what opportunities does the law provide?

Press service of the State Tax Service of Ukraine, published 10 September 2025 at 14:08 Chapter: News

Current legislation provides for the VAT exemption for a number of transactions carried out for benefit of persons with disabilities.

Transactions subject to the VAT exemption:

- supply of certain products and services provided for benefit of persons with disabilities and other privileged categories of the population,

- supply of products/services manufactured (provided) directly by enterprises and organizations founded by public associations of persons with disabilities.

Provisions of Article 197 of the Tax Code of Ukraine stipulate that the VAT exemption is possible subject to compliance with certain requirements, in particular regarding categories of products/services, business entities and sources of financing.

List of transactions exempted from the VAT particularly includes:

- Supply of special products, in particular technical (component) and other rehabilitation equipment, including medical products for individual use by persons with disabilities and other privileged categories of the population – according to the list approved by the Cabinet of Ministers of Ukraine (Sub-paragraph 197.1.3 Paragraph197.1 Article 197 of the Tax Code of Ukraine)

- Services of rehabilitation institutions that have appropriate license for persons and children with disabilities (Sub-paragraph 197.1.5 of the Tax Code of Ukraine).

- Rehabilitation services, sanatorium and resort treatment, recovery and recreation in Ukraine for children under 18 years of age, people and children with disabilities (Sub-paragraph 197.1.6 of the Tax Code of Ukraine).

- Maintenance services for persons in rehabilitation institutions, as well as services for food, provision of property, etc., provided at the expense of state funds (Clause "b" and "d" of Sub-paragraph 197.1.7of the Tax Code of Ukraine).

- Paid services for completing registration and accounting documents, using rare, valuable reference notebooks and books provided by libraries owned by all-Ukrainian public associations of people with disabilities (Sub-paragraph 197.1.20 of the Tax Code of Ukraine).

- Services of agricultural producers, in particular product supply of their own production and land cultivation for persons with disabilities (Sub-paragraph 197.1.24 of the Tax Code of Ukraine).

- Supply of products/services by enterprises established by public associations of persons with disabilities, subject to compliance with legislative requirements and positive decision of the authorized body (Paragraph 197.6 of the Tax Code of Ukraine).

Important! 

Use of benefits is possible only in case of full compliance with requirements specified by the Tax Code of Ukraine and other regulatory legal acts.

Therefore, business entities that provide services or product supply to preferential categories of citizens must carefully check compliance of their activities with the established criteria.