How vat / sales tax works in Ukraine
Ukrainian VAT defaults to 20%, with 14% on agricultural goods and 7% on medicines, medical devices, and hotel stays.
Traders register past the UAH 1 million turnover line, file monthly electronic returns, and run VAT accounts under electronic administration.
Exports zero-rate, financial, health, and education supplies are largely exempt, and wartime reliefs adjust mechanics by sector and period.
Tax rates at a glance
- Standard VAT
- 20%
- Reduced VAT
- 14% / 7%
- Agri rate
- 14%
- Medicines and stays
- 7%
- Exports
- 0%
- Registration line
- UAH 1m
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersFreelancersExpatsCross-border traders
Watch out for
- Wartime reliefs and martial-law adjustments move mechanics by sector and period, so peacetime guides mislead on current duties.
- Electronic administration makes VAT accounts and invoice registration preconditions for credits, not formalities.
- Diia City residents follow special IT-industry mechanics that differ from standard tracks.
- Export documentation under wartime logistics needs heightened evidence discipline.
Frequently asked questions
What is the VAT rate in Ukraine?
Ukraine applies 20% standard VAT in 2026, with 14% for agricultural goods and 7% for medicines and hotel stays.
How often are Ukrainian VAT returns filed?
Monthly through electronic returns backed by VAT-account administration and registered invoices.
When must a Ukrainian business register for VAT?
Past UAH 1 million of turnover, with voluntary registration below. Diia City residents follow special mechanics.