Full explanation
VAT is Ukraine's main indirect tax with a standard 20% rate. For agricultural producers with annual turnover above 1 million UAH, VAT registration is mandatory. Registered payers charge VAT on sales and can reclaim VAT on expenses (fertilizer, crop protection, fuel, machinery purchases). The refund runs through a monthly declaration. Farmers without VAT registration (turnover under 1 million UAH) pay VAT on purchases but cannot reclaim it — which effectively raises cost of goods by 20%. Special regime for agriculture: Group 4 single tax for payers with agricultural share >75% — fixed rate 0.19%–5.4% of normative monetary land valuation (by soil category). As of 2026 Ukrainian VAT moved to electronic invoices (ПН) via the Electronic Cabinet system. Military levy 5% since 01.12.2024 (Law 4015-IX) — separate from VAT.