Taxation of VAT on equipment operating on renewable energy sources

• Renewable energy sources are exempt from VAT taxation according to the Tax Code of Ukraine.
• Equipment working on renewable energy sources, energy-saving equipment and materials, and equipment for alternative fuel production are exempt from VAT when imported into Ukraine.
• Materials, equipment, and components used in the production of equipment working on renewable energy sources or alternative fuel production are also exempt from VAT.
• Energy-saving equipment and materials that promote fuel and energy resource savings are exempt from VAT.
• Measurement, control, and management tools for fuel and energy resource consumption are exempt from VAT.
• The exemption from VAT applies if these goods are used by the taxpayer for their own production and if identical goods with similar quality indicators are not produced in Ukraine.
• The list of such goods with their corresponding codes is determined by the Cabinet of Ministers of Ukraine.
• In case of non-compliance with the requirements for the intended use of these goods, the taxpayer must increase their tax liabilities and pay a penalty based on the VAT amount that should have been paid at the time of import.
• In other cases, the supply of equipment, materials, and components mentioned above is subject to VAT taxation according to general rules.

Source: od.tax.gov.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---