Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 7%, 14% |
The local name for VAT in Ukraine is ”Podatok na dodanu vartist (PDV)”.
There are basically 2 VAT rates in Ukraine:
- Standard VAT rate is 20%
- Reduced VAT rate is 7% and 14%
Recent developments
For more information about (recent) rate change developments in Ukraine, please click here.
Standard rate: 20%
This rate applies for all transactions that take place in Ukraine, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 14%
- Transactions of import and supply of agricultural products in Ukraine under certain UKT FEA
- “Whole milk” may include milk classified according to UKT FEA 0401, which was only chilled and not subjected to separation and other types of processing, including thermal, which change its chemical state and composition of components
Reduced rate: 7%
- Supplies within Ukraine and import into Ukraine of registered medicines and medical devices that are either duly registered or which compliance with technical regulations is supported by a compliance certificate
- Supplies within Ukraine and import into Ukraine of medicines, medical devices and/or medical equipment for use in clinical trials permitted by the Ministry of Health of Ukraine
- Supplies of certain services related to admission to shows, theatres, concerts, museums, zoos, exhibitions and similar cultural events, as well as hotel accommodation services
Zero rate (0%)
Examples of goods and services taxable at 0%
- Exports of goods (under customs regime of export, reexport (return of goods), duty-free shop and free customs area)
- International transportation of passengers, luggage and shipments of cargo
- Processing and repairs of imported movable property that is subsequently exported from Ukraine
Examples of exempt supplies of goods and services (not liable to VAT, no input VAT deduction)
- Supplies of certain types of software (temporarily, until 1 January 2023)
- Health care and rehabilitation services
- Supplies of baby nutrition
- Educational services
- Charity
- Supply of land plots (except for those located under real estate objects and included in their value under legislation)
- Supplies of housing (except for the first supply)
- Supplies of periodical printed mass media (newspapers and journals), books, etc., of domestic production
- Religious and funeral services
- Supplies to embassies, consulates and representations of international organizations (for their own needs) on a reciprocal basis
- Imports of cultural items produced 50 or more years ago
- Disposals by banks and financial institutions of property pledged by non-VAT taxpayers
- Sales or purchases by banks of liabilities on deposits
- Imports of certain equipment for wind and solar power plants
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on May 26, 2021.
