In Ukraine, an important tax has been abolished: who will be exempt from paying from August 1

Legislative changes in the field of social services

From August 1, 2025, important changes in legislation will come into effect in Ukraine, which should affect the operation of the social service market. The Verkhovna Rada of Ukraine supported the initiative of the Ministry of Social Policy to abolish the taxation of providers of these services with value-added tax.

This initiative proposes the inclusion of providers and recipients of social services in a special Register as the sole condition for receiving tax benefits. The updates are aimed at reducing the financial burden on providers, stimulating competition for quality services, and harmonizing national legislation with European standards.

The Minister of Social Policy, Oksana Zholnovych, emphasized: 'Exemption from VAT for providers of social services is an important step toward ensuring the accessibility of social support, supporting the public sector, and fulfilling social obligations to citizens. We expect these changes to positively impact market participants and the quality of services.'

The Ministry of Social Policy reminds of the possibility of online registration in the Register of providers of social services through a special portal of the agency.

The Parliament of Ukraine has adopted important legislative changes regarding taxation in the field of social services, aimed at simplifying conditions for providers and improving citizens' access to quality social services. The changes involve exemption from VAT for providers of social services and are expected to reduce the financial burden on providers, which is anticipated to positively affect market participants and enhance the quality of services.