Ukraine to Waive Customs Duties and VAT on Imported Energy and Demining Equipment

22 July 2024 - Legal news

The Ukrainian Parliament has approved draft laws No. 11258 and No. 11259, introducing amendments to the Tax and Customs Code of Ukraine. These amendments exempt from import duty and VAT goods imported for the production or repair of energy facilities and mechanized demining machines.

The proposed laws include customs payment privileges for importing energy equipment and other relevant goods necessary to ensure uninterrupted electricity supply in Ukraine. They also cover the import of components for demining machines, such as materials, parts, aggregates, equipment, and assembly units, including machinery kits, for use in production and repair.

The following goods imported into Ukraine’s customs territory (including those sent by international postal and express mail) will be exempt from VAT and import duties:

Steam turbines (except for turbines for ship propulsion systems);
Inverters (except for inverter welding machines);
Lithium-ion batteries (except for energy storage units with a capacity of less than 300 W AC and DC and individual lithium-ion cells with a capacity of less than 200 Ah);
Solar electric panels;
Electric generating sets with a piston engine (except for those intended for civil aviation);
Gas turbines;
Electrical machinery and equipment with its own power supply;
Engines and generators, electric (except for electric generator sets) with a capacity of more than 750 kVxA;
Control panels, switchboards for controlling or distributing electric current (except for those intended for cars);
Parts for wind power generating units;
Hydraulic turbines and parts thereof only;
Spur and helical gears;
Spark ignition internal combustion engines and internal combustion engines with compression ignition;
Transformers, static converters and inductors;
Consoles, panels, consoles, tables, cabinets and other bases for electrical devices;
Wires, cables and other electrical conductors;
Binoculars, monoculars and other optical devices;
Tools for geodesy, etc.

These exemptions are proposed to be in effect for the duration of martial law but not beyond December 31, 2025.

The draft law is awaiting the President’s signature and will become effective upon the official announcement.

This initiative is a critical and strategic move. It is expected to significantly enhance the construction and restoration of thermal, wind, solar, hydro, and gas generation facilities, as well as energy storage facilities, and support demining activities.

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