Ukraine Tax Agency Clarifies VAT Changes for Energy, Water Sectors

Sept. 19, 2025, 5:00 AM UTC

The Ukrainian State Fiscal Service Sept. 11 announced VAT amendments and exemptions for the energy and water sectors, under Law No. 4536-IX, effective Oct. 1. The announcement includes: 1) the extension, to Jan. 1, 2028, of the cash method for VAT on operations involving the supply of electricity, coal and its enrichment products, centralized water supply, and sewerage; 2) a VAT exemption regime for the free transfer to water user organizations of reclamation systems in state or municipal ownership; 3) that the exemption is temporary and will remain valid until Ukraine becomes a full member of the EU; and 4) ...

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