On 23 September 2014, the President of Ukraine signed two laws, Law No. 1657-VII and Law No. 1658-VII (the “Laws”). The Laws were adopted by the Parliament of Ukraine at the beginning of September 2014 and introduce changes to the Tax Code and the Customs Code of Ukraine. The Laws provide that the import and sale of military goods (e.g. tanks, unmanned aerial vehicles, armoured combat vehicles (with or without weapons) and detonators etc.) will not be subject to value added tax (“VAT”) or import duty in Ukraine.

Both exemptions are effective from 25 September 2014, however, the VAT exemption will only be in place until the end of the antiterrorism operation or martial law (if introduced) in Ukraine, whereas the import duty exemption will be in place for an unlimited period of time.

This regime does not apply to military goods that are imported from (i) states that have a recognised “occupant” or “aggressor” status under Ukrainian law or international treaties, and (ii) countries that are a party to an international treaty on collective defence or a treaty which has a military component, provided that an occupant or aggressor is also a party to such treaty.


Law of Ukraine No. 1657-VII On Amending of the Customs Code of Ukraine Regarding Simplification of Import of Military Goods, dated 2 September 2014.

Law of Ukraine No. 1658-VII On Amending of the Tax Code of Ukraine Regarding the Release from Taxation of Military Goods, dated 2 September 2014