Ukrainian VAT rates and VAT compliance

Ukraine operates a VAT system broadly aligned with international VAT/GST principles. Ukrainian VAT is administered by the State Tax Service of Ukraine (Derzhavna podatkova sluzhba Ukrainy – STS).

Ukraine applies a standard VAT rate alongside reduced rates and zero-rating for specific supplies.

Businesses registered for VAT in Ukraine must apply the correct VAT rate to taxable supplies and remit the tax to the State Tax Service by submitting periodic VAT returns.

Some supplies are exempt from VAT in Ukraine. These commonly include:

• Certain financial and insurance services
• Healthcare and medical services
• Education and vocational training
• Certain cultural and non-profit activities
• Residential rental of immovable property

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT number is required for businesses carrying out taxable activities in Ukraine.

Ukrainian-established businesses must register for VAT once taxable turnover exceeds UAH 1 million over the previous 12 consecutive calendar months. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration.

Non-established (foreign) businesses making taxable supplies in Ukraine may be required to register for VAT depending on the nature of the supplies and the applicable VAT rules.

Foreign suppliers of electronic services to individuals in Ukraine must generally register for VAT and charge Ukrainian VAT from the first taxable supply under Ukraine’s simplified registration regime.

Get more information on VAT registration in Ukraine.

VAT-registered businesses in Ukraine must file monthly VAT returns.

Returns include output VAT on sales and recoverable input VAT on

purchases.

All filings are submitted electronically through the State Tax Service’s online portal.

Get more information on VAT returns in Ukraine.

Foreign businesses storing goods in Ukraine must consider VAT registration if those goods are held for sale.

Holding inventory in Ukraine for resale typically triggers VAT registration obligations. Imports into Ukraine may also trigger VAT registration, particularly where the foreign business acts as importer of record.

VAT is generally payable on the importation of goods into Ukraine.

• Import VAT is due at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.

Foreign businesses supplying digital services (such as telecommunications, broadcasting, and electronically supplied services) to individuals in Ukraine must register for VAT and charge Ukrainian VAT from the first taxable supply.

The standard VAT rate of 20% generally applies.

VAT-registered businesses may recover VAT incurred on taxable business expenses through their VAT returns by offsetting input VAT against output VAT.

Nonresident businesses that are not registered for VAT in Ukraine generally cannot recover Ukrainian VAT through a standalone refund mechanism comparable to the EU VAT refund system.

Ukraine applies zero-rating to qualifying exports of goods and certain international services. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

Businesses must issue VAT-compliant tax invoices that include:

• Supplier and customer details
• VAT identification number
• Description of goods or services
• VAT rate(s) and VAT amount

Ukraine operates a mandatory electronic VAT invoice registration system. VAT invoices must be registered in the Unified Register of Tax Invoices (URTI) maintained by the State Tax Service.

Time-of-supply rules:

• Goods: VAT generally becomes chargeable on the earlier of shipment of the goods or receipt of payment.
• Services: VAT is generally due on the earlier of completion of the service or receipt of payment.
• Imports: VAT is due at customs clearance.

VAT records must generally be retained for three years from the filing deadline for the relevant tax return. VAT returns are generally filed monthly, with returns due by the 20th day of the month following the reporting period.