On July 16, 2024, the Verkhovna Rada of Ukraine (Parliament) passed amendments to the Tax Code and Customs Code under Bills No. 11258 and No. 11259, respectively. The amendments received broad support from lawmakers during the session.

“Restoring our energy capacity before the heating season is a critical priority,” said Yuliia Sviridenko, Ukraine’s First Deputy Prime Minister and Minister of Economy. She highlighted the government’s recent comprehensive support package for individuals and businesses to rebuild the country’s damaged energy infrastructure. This initiative promotes the development of new distributed generation systems and self-sufficient energy projects for individuals, multi-apartment buildings, communities, and industrial parks. As part of this effort, the government announced a tax exemption on the import of energy equipment. “We appreciate the deputies’ support for this initiative. This measure allows businesses to import equipment at a lower cost, facilitating faster and more affordable project implementation in Ukraine, which not only addresses our domestic energy needs but also helps reduce the government deficit,” Sviridenko added.

Yuliia Sviridenko, Ukraine’s First Deputy Prime Minister and Minister of Economy

Ukraine’s power grid and energy facilities have suffered significant damage due to recent concentrated military attacks. President Volodymyr Zelensky stated that multiple rounds of attacks have destroyed half of the country’s energy capacity. To prevent grid collapse, authorities have implemented nationwide rolling blackouts. The recent heatwave has further strained the grid, increasing electricity demand. In Kyiv, most buildings now experience at least 10 hours of power outages daily.

In response, there has been a surge in demand for photovoltaic energy storage systems in Ukraine. These products are currently being imported mainly through distribution channels in neighboring countries such as Poland, Slovakia, and Hungary.

The tax exemption policy covers a range of energy equipment, including generation and storage systems for thermal, solar, wind, hydro, and natural gas energy. It is important to note that this exemption is only applicable during wartime and will not extend beyond January 1, 2026. The amendments will take effect once signed into law by the President of Ukraine.

Official Information Source: [https://me.gov.ua/News/Detail?lang=uk-UA&id=4f9f1c24-dd9f-48cd-82dc-9c1eee22fd73&title=BezmitneVvezenniaEnergetichnogoObladnannia]