Parliamentary Bill Proposes VAT Exemption for Ground Drone Components Import

A legislative initiative has been registered in the Verkhovna Rada to eliminate tax barriers for domestic production of unmanned equipment. A group of 14 parliamentarians submitted bill No. 162224, which proposes exempting the import and supply of materials and components for ground robotic systems (GRSs) from value-added tax (VAT).

Back in late May, the parliament approved tax relief for the supply of finished GRSs under government contracts. However, these benefits did not cover the acquisition and import of parts, components, spare parts, and materials necessary for their manufacturing, repair, and maintenance.

Due to this tax imbalance, domestic manufacturers and repair units have been forced to pay a 20% VAT when purchasing components without the right to a tax credit. This automatically increases production costs and expenditures on state defense orders.

The authors of the document believe that adopting this initiative will reduce the tax burden on manufacturers, lower the cost of equipment, ensure more efficient use of public funds, and guarantee uninterrupted supply and repair of robots for Ukraine's Defense Forces.