In Ukraine, VAT on wind turbines is being abolished: what will this change for the energy sector

In early autumn 2025, draft laws were registered in the Verkhovna Rada that provide for the exemption of wind turbines and components from VAT. Andrii Konechenkov, head of the Ukrainian Wind Energy Association, emphasizes that this has become possible thanks to the joint efforts of industry representatives and the parliamentary committee.

'This is not just a technical update – it is a signal that Ukraine is ready to support all RES technologies on equal terms, as is already the case in some countries in Europe and the world,' Konechenkov emphasized.

According to the expert, tax incentives for wind energy are not a privilege, but a necessary tool for the energy transition. Wind energy is important for providing additional capacities in the winter period, so the exemption from VAT on the import of equipment is of great importance for the country's energy security. There are already examples of successful implementation of similar approaches in the world. For instance, the UK has a zero VAT rate on the installation of turbines, while in Portugal and Italy the tax rate ranges from 6% to 10%. China combines preferential imports with partial VAT refunds to manufacturers.

'Such incentives demonstrate that the state is creating predictable rules of the game and increasing investor confidence. Ukraine must act the same way – so that no RES technology remains unsupported,' Konechenkov concluded.

Expert Maksym Nemchynov also emphasized that this decision could improve the economic conditions for investors in wind energy, as these projects require significant capital investments. Tax benefits for turbine imports will enable Ukrainian energy companies to promote the development of wind energy in the country and improve energy security. The emphasis on renewable energy sources is an important step in reducing dependence on imported energy resources.