Ukraine operates a value-added tax (VAT) system known locally as Podatok na dodanu vartist (PDV). Ukraine is not a member of the European Union (EU), but its VAT system is broadly aligned with international VAT/GST principles. As part of its EU accession process, Ukraine continues to harmonise aspects of its VAT legislation with the EU VAT Directive.
Ukrainian VAT is governed primarily by the Tax Code of Ukraine and related regulations. VAT is administered by the State Tax Service of Ukraine (Derzhavna podatkova sluzhba Ukrainy – STS). The tax authority is responsible for issuing guidance, processing VAT registrations and returns, overseeing electronic VAT administration systems, and enforcing VAT compliance.
Businesses carrying out taxable activities in Ukraine — whether resident or nonresident — must comply with Ukrainian VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant tax invoices (including electronic tax invoices where applicable), maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Ukrainian VAT rules.
