Aircraft manufacturing entities that meet the requirements established by the Law of Ukraine “On the Development of the Aircraft Manufacturing Industry” can receive tax benefits in the form of:
- temporary exemption from VAT and customs duties (until 2025) of operations on import of goods (except for excise goods) used for the needs of the aircraft industry, if such goods are exempt from import duty in accordance with part 4(13) of Chapter XXI “Final and Transitional Provisions ” of the Customs Code of Ukraine;
- temporary VAT exemption (until 2025) of supply operations in the customs territory of Ukraine of the results of scientific research and R&D works performed for the needs of the aircraft industry;
- VAT at the rate of 0% of operations on the sale of products (services) produced by enterprises at the expense of the State Budget of Ukraine.
The above-mentioned requirements can be applied to legal entities from the moment of inclusion in the List of aircraft manufacturing entities, provided that the aircraft manufacturing entities comply with the following requirements of the Law of Ukraine “On the Development of the Aircraft Manufacturing Industry”:
- aircraft manufacturing entities carry out activities in the aircraft industry;
- aircraft manufacturing entities have appropriate licenses, as well as appropriate certificates for the right to develop or manufacture, or repair, or refit, or modify, or maintain aircraft equipment and aircraft engines;
- aircraft manufacturing entities meet at least 2 of the following criteria:
– develop, produce, repair aircraft equipment and aircraft engines;
– perform a state or defense order for the development, production, repair of aircraft equipment and aircraft engines;
– ensure Ukraine’s fulfillment of international obligations for implementation of international contracts for development, supply, production, repair of aircraft equipment and aircraft engines.