VAT (value added tax) is built into the price of most goods and services in Ukraine: at the 20% rate it makes up one sixth of the price.
VAT, value added tax, is an indirect tax paid by the buyer as part of the price and transferred to the budget by the seller. The standard rate in Ukraine is 20%, 7% for registered medicines and medical devices, 14% for some agricultural products and 0% for exports.
The rate is charged on the price before tax, so VAT makes up one sixth of a VAT-inclusive price: UAH 200 in a UAH 1,200 purchase. Each VAT payer pays tax only on the value it adds, the difference between sales and purchases, and the final consumer bears the full tax.
Baby food on the Cabinet of Ministers list and educational and medical services of licensed institutions are sold without VAT. Sole proprietors on the simplified tax are usually not VAT payers and do not add it to prices. VAT is the largest source of Ukraine's state budget revenue.
In detail, with examples: How much tax you really pay in Ukraine: salary, VAT, excise and a worked example
Excise tax Tax wedge Personal income tax
Checked against official sources on November 11, 2026. When a figure changes, it is updated on every page of the site.
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The tax wedge on salary, VAT in receipts and utility bills, fuel and tobacco excise, a monthly total, taxes on savings and property, sole proprietors and the budget.
2026 rates and limits from the State Tax Service, payments for each group and the point where group 2 becomes cheaper than group 3.