Energy Issues

10/ 12/ 2025

Business welcomes the extension of VAT exemptions on energy equipment until 2029 The European Business Association welcomes the decision of the Verkhovna Rada of Ukraine to extend the VAT exemption for imports of energy equipment until 1 January 2029. The decision applies to equipment for solar and wind power plants, energy storage systems, as well as gas piston and gas turbine generation. The amendment was introduced to Draft Law No. 14097, which was adopted at the second reading on 3 December. The respective exemptions are set out in paragraphs 87¹ and 88¹ of subsection 2 of Section XX of the Tax Code of Ukraine and will enter into force in January 2026. The Energy Committee of the European Business Association notes that extending these exemptions and expanding their scope is critically important for the rapid restoration of electricity generation and the country’s energy infrastructure. This decision is the result of business advocacy efforts, in particular by the European Business Association, which since autumn 2025 has been emphasizing the need to extend the exemptions for energy equipment imports in 2026 and to broaden the list of such equipment.

Business welcomes the extension of VAT exemptions on energy equipment until 2029

The European Business Association welcomes the decision of the Verkhovna Rada of Ukraine to extend the VAT exemption for imports of energy equipment until 1 January 2029. The decision applies to equipment for solar and wind power plants, energy storage systems, as well as gas piston and gas turbine generation. The amendment was introduced to Draft Law No. 14097, which was adopted at the second reading on 3 December. The respective exemptions are set out in paragraphs 87¹ and 88¹ of subsection 2 of Section XX of the Tax Code of Ukraine and will enter into force in January 2026.

The Energy Committee of the European Business Association notes that extending these exemptions and expanding their scope is critically important for the rapid restoration of electricity generation and the country’s energy infrastructure.

This decision is the result of business advocacy efforts, in particular by the European Business Association, which since autumn 2025 has been emphasizing the need to extend the exemptions for energy equipment imports in 2026 and to broaden the list of such equipment.

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