**1. Substance of the Law**
\nThis Law temporarily, for the period of martial law in Ukraine, exempts from value-added tax (VAT) transactions for the supply of unmanned ground systems within the customs territory of Ukraine. The tax exemption applies to goods classified under product groups 84, 85, 87, 90, 93 according to the Ukrainian Classification of Goods for Foreign Economic Activity (UKT ZED). The tax exemption applies exclusively on the condition that the supply is carried out under state defense procurement contracts, or if the end recipient is a designated defense structure or a contractor under defense contracts.<\/p>\n
**2. Structure of the Law and Amendments**
\nStructurally, the Law consists of two sections:
\n* **Section I** directly amends the Tax Code of Ukraine, supplementing Subsection 2 of Section XX “Transitional Provisions” with a new paragraph 99-1.
\n* **Section II (Final Provisions)** stipulates that the law shall enter into force on the day following the day of its publication, and obligates the Cabinet of Ministers of Ukraine to bring its regulatory legal acts into conformity with this document within a one-month period.<\/p>\n
Compared to previous versions of the Tax Code, the law introduces an entirely new temporary provision that exempts domestic transactions for the supply of ground robotic complexes from VAT, which were previously taxed on a general basis.<\/p>\n
**3. Key Provisions for Practical Application**
\nFor the practical application of the law, the following provisions are of critical importance:
\n* **Product codes:** The exemption applies only to unmanned ground systems classified under groups 84, 85, 87, 90, 93 according to the UKT ZED.
\n* **Targeted purpose:** A transaction is exempt from VAT in two cases only:
\n 1. The supply is carried out under state defense procurement contracts.
\n 2. The end recipient (pursuant to an end-user certificate or the terms of the contract) is the Ministry of Defense, the Armed Forces of Ukraine, law enforcement agencies, other military or volunteer formations, or enterprises that are contractors or subcontractors under state defense contracts.<\/p>\n