Zelenskyy signs laws exempting drone component imports from VAT and customs duty

President Volodymyr Zelenskyy has signed two laws exempting the import of components for the production and maintenance of UAVs from VAT and customs duty during wartime (draft laws Nos. 9275 and 9276).

Source: Mykhailo Fedorov, Deputy Prime Minister for Innovations and the Development of Education, Science and Technology and Minister of Digital Transformation, on Telegram

"From now on, importers will be exempt from paying [VAT and customs duty] for materials, nodes, aggregates, equipment and components for UAVs during martial law.

This is the next step towards scaling up drone production. Right now the Defence Forces of Ukraine are in need of thousands of drones," Fedorov stated.

"During martial law, the import of components (materials, nodes, aggregates, equipment and spare parts) for UAVs, where these are being imported by businesses for their own manufacturing and repair of UAVs, will be exempt from VAT and customs duty," explained Yaroslav Zhelezniak, who drafted one of the laws.

"A business that has imported such components must submit a report on how these goods were used. In cases where such imported goods are misused, the business will be obliged to pay the remainder of the customs fees it had been exempted from, and to pay a fine."

Zhelezniak added that the laws will come into force on the day after the date on which they were published.

Background:

In May, Ukraine’s Parliament, the Verkhovna Rada, approved draft laws Nos. 9275 and 9276, which provide for an exemption from VAT and customs duty on the import of components for the production and maintenance of UAVs during martial law.

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