Duty-free and VAT-free generators: Rada voted in favor of tax incentives for power equipment

Russian invaders have been shelling objects of Ukraine's energy system for a long time. Due to the lack of generation, Ukrainians and businesses are facing power outages. Trying to cope with the situation, many are buying generators, as well as various solutions for energy generation and storage. Due to high demand, prices for these have significantly increased.But soon they may go down.

Finally, members of parliament supported amendments to the legislation that exempt a large list of energy equipment from customs duties and VAT when imported into Ukraine. The following equipment is mentioned for improving the energy situation: 

• electric generator equipment; 
• equipment for wind and solar generation; 
• batteries (except for low-power batteries). 

The Verkhovna Rada also approved the cancellation of duties and VAT for imported equipment that will be useful for Ukrainian defenders against Russian occupiers: 

• equipment for demining activities; 
• equipment for producing means to counter technical reconnaissance. 

These tax benefits are contained in bills No. 11258 and No. 11259, which were supported by 305 and 313 MPs, respectively.

In 2022, Ukraine already introduced tax benefits for the restoration of the energy sector. From November 9, 2022, the Cabinet of Ministers exempted generators, transformers, and batteries from taxes. This allowed the import of tens of thousands of generators, with the amount of the benefit reaching hundreds of millions of hryvnias.

The provided benefits were short-term and ended in the spring of 2023.

New benefits will be in effect until the end of martial law or until January 1, 2026.