How to Calculate VAT in Ukraine: rates, formula and example
VAT in Ukraine is a tax on the value added, paid by the buyer and remitted by the seller. In practice the task is always one of two: either charge the tax on top of a net price, or extract it from a price that already includes it. Below is a breakdown of both, all 2026 rates, and a worked example you can verify by hand.
Ukraine VAT rates for 2026: summary
| Rate | When it applies | Example: 60,000 UAH |
|---|---|---|
| 20% | Main rate: domestic transactions, sale of goods and services | VAT 12,000 UAH, total 72,000 UAH |
| 14% | Exports of goods and services, specific operations under the Tax Code | VAT 8,400 UAH, total 68,400 UAH |
| 7% | Exports of services in certain categories, some products | VAT 4,200 UAH, total 64,200 UAH |
| 0% | Exports with confirmed cross-border movement | VAT 0 UAH, total 60,000 UAH |
The VAT base for 2026 is 21,000 UAH. Any amount above the base is taxed at the single 20% rate on the excess.
Charging VAT vs extracting it
Charging: you take the price without tax and add VAT on top. A seller with a net price of 12,000 UAH issues an invoice for 14,400 UAH at 20%, of which 2,400 UAH is tax.
Extracting: you take the final price that already includes the tax and pull the tax out. From the same 14,400 UAH at 20%, the tax is 2,400 UAH and the net price is 12,000 UAH.
The key difference is which number you start from. When charging, the base is known upfront. When extracting, you have to find it: divide by 1.2 (equivalently, multiply by 5/6). Picking the wrong mode produces a 16.7% gap — 12,000 and 10,000 UAH instead of 14,400 and 12,000 UAH.
A practical rule: determine the mode from the document. In accounting documents VAT is usually shown both charged and extracted, and the two results must match. If they do, the calculation is right.
Which VAT rates apply in Ukraine in 2026
The main rate is 20%. It applies to most goods and services inside the country, and it is the rate most questions are actually about.
The 14% rate applies to exports of goods and services, and to a list of specific operations set out in the Tax Code.
The 7% rate applies to exports of services in certain categories and to some types of products.
The 0% rate covers exports of goods and services with confirmed cross-border movement. Zero percent is not an exemption: you still file a report.
The VAT base for 2026 is set at 21,000 UAH. If the value of a transaction exceeds that base, the 20% single rate applies to the amount exceeding it, not to the whole amount.
Step-by-step example: charging and extracting VAT
Take 60,000 UAH and a 20% rate. When charging, the tax is 60,000 × 0.20 = 12,000 UAH and the total including VAT is 72,000 UAH.
Now extract from 72,000 UAH: base = 72,000 / 1.2 = 60,000 UAH, tax = 72,000 − 60,000 = 12,000 UAH. The result matches the calculation by charging — that is the main correctness check.
Test with a different number. Extracting from 50,000 UAH: base = 50,000 / 1.2 = 41,666.67 UAH, tax = 8,333.33 UAH. Had you wrongly taken 20% of 50,000, you would get 10,000 UAH — 1,666.67 UAH too much.
The classic mistake when extracting is multiplying by 0.8 instead of dividing by 1.2. The result still looks plausible, but it is wrong, and cross-checking against your accounting documents will expose it.
VAT and taxes for sole proprietors on the simplified system
Sole proprietors on the simplified system fall into two groups depending on the unified tax rate. The 5% rate applies to income without VAT; the 3% rate applies to income with VAT. At 3% you charge VAT to your customers and remit it together with the unified tax.
Which group you pick depends on whether you work with VAT payers and on your expected turnover. If your clients are large companies that pay VAT, the 3% rate is better: you pay less tax overall and the buyer gets their deduction.
The income limit for the third group of sole proprietors in 2026 is 10,091,049 UAH per year. Exceeding it means moving to the general taxation system from 1 January of the following year.
Do not forget the unified contribution: 22% of income, but not less than 1,902.34 UAH per month. That is a separate payment and replaces neither the unified tax nor VAT.
How to verify the calculation and reconcile it with the tax authority
First rule: always verify by working backwards. If you charged VAT, extract it from the total; if you extracted it, charge it from the base. The two must match to the kopeck.
Second: check the rate and the base. The 20% rate does not apply to just any amount — if the transaction value exceeds 21,000 UAH, what matters is that the single rate applies, not a preferential one.
Third: check the period. A calculation made in December falls into the December report, even if the payment went through in January. The period is set by the shipment or payment date, and those dates differ for services and goods.
Fourth: keep the calculations themselves. A file with the calculation and the date answers questions during an audit and makes it easier to explain the figure on an invoice or statement.
Calculate VAT in the calculator
Charge and extract VAT at all 2026 rates. calculate vat in the calculator — Calculate VAT in the calculator.
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Charge and extract VAT at all 2026 rates.
FAQ
What VAT rate applies in Ukraine right now?
The main rate in 2026 is 20%. Alongside it, 14%, 7% and 0% apply to export operations and specific product and service categories. The VAT base for 2026 is 21,000 UAH: any amount above it is taxed at the single 20% rate.
How do I extract VAT from a total?
Divide the final amount by 1.2 at the 20% rate — that gives the net base. The tax is the difference between the total and the base. At other rates, divide by 1.14 or 1.07. The main error is multiplying by 0.8 instead of dividing by 1.2.
What is the difference between charging and extracting VAT?
When charging, the tax is added on top of a known net price; when extracting, it is pulled out of an already gross price. Accounting documents show VAT both ways, so if charging and extracting agree, the calculation is correct.
What VAT does a sole proprietor on the simplified system pay?
Third-group sole proprietors on the 3% unified tax rate charge VAT to their customers and remit it together with the unified tax. Those on the 5% rate operate without VAT and do not extract it from the price. The third-group income limit for 2026 is 10,091,049 UAH per year.
Do I have to pay VAT if I am not registered as a VAT payer?
No. VAT only arises for VAT payers. A sole proprietor on the simplified system without VAT payer status pays tax within their group at either 3% or 5% and does not handle VAT.
How is VAT different from corporate income tax?
They are different taxes with different bases. VAT is charged on the value added — the difference between the price with tax and without. Corporate income tax (18% in 2026) is charged on the financial result: revenue minus expenses.
How do I calculate VAT when the amount exceeds 21,000 UAH?
If the transaction value is above the 21,000 UAH base, the tax is charged at the single 20% rate, but only on the amount exceeding it. For a transaction of 31,000 UAH the tax is 10,000 × 0.20 = 2,000 UAH, not 31,000 × 0.20. Documents still show the rate as 20% — there is no separate higher-rate band for amounts above the base.
Do I have to show VAT on documents if I am not a VAT payer?
VAT payers must show the tax on primary documents. If you are not a VAT payer, you neither extract it from the price nor charge it — the document simply shows the amount. Watch for cases where the counterparty asks for an invoice with VAT: that only makes sense if you are a VAT payer.