Wind Energy to be Exempt from VAT: What Will Change for Ukrainians.

Exemption from VAT for Wind Turbines in Ukraine

At the beginning of autumn 2025, a number of bills were registered in the Verkhovna Rada aimed at exempting wind turbines and their components from VAT. The head of the Ukrainian Wind Energy Association, Andriy Konechenkov, noted that this became 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 it is already in some countries of Europe and the world,” Konechenkov emphasized.

The expert also added that tax incentives for wind energy are not a privilege but a critically important tool for transitioning to new forms of energy. Wind energy plays an important role in providing additional capacities during the winter period, so the VAT exemption on equipment imports is crucial for Ukraine's energy security.

Examples of Successful Practices Worldwide

Worldwide, there are already examples of effective use of similar approaches. For instance, in the United Kingdom, there is a zero VAT rate on the installation of turbines, while in Portugal and Italy, the tax rates range from 6% to 10%. In China, they combine 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 likewise – so that no RES technology is left unsupported,” Konechenkov concluded.

Expert Maxim Nemchinov also emphasized that this decision has the potential to improve the economic conditions for investors in wind energy, which requires significant capital investments. Tax benefits for turbine imports can promote the development of wind energy in the country and strengthen energy security. It is important to focus on renewable energy sources as a strategic step towards reducing dependence on energy resource imports. Thanks to the new bills, Ukraine will be able to more actively develop wind energy, which will not only foster investment growth but also strengthen the country's energy independence. The implementation of such initiatives allows Ukraine to embark on a path to sustainable energy and reduces the carbon footprint, improving the environmental situation in the country.