The types of customs tariffs in Ukraine are established by the Law of Ukraine “On Foreign Economic Activity”.

Article VII of this law describes 3 types of customs duty rates for imported products:

  • Full rate;
  • Most Favored Nation (MFN);
  • Reduced rate.

The bulk customs rate, depending on the type of product, can be 10 times higher than the MFN rate.

MFN customs rate – tariffs on imports in Ukraine that are applied to products of the MFN member states in accordance with Article I of GATT 1994.

Preferential customs rate – tariffs on imports in Ukraine that apply to imports from countries with which Ukraine has a preferential trade agreement, for example, the Free Trade Agreement (FTA). These tariff rates are even lower than the MFN rates. This tariff regulation operates primarily between the CIS countries.

  • 98.5% of tariffs are charged at an ad valorem rate.
  • The remaining 1.5% of customs duties are specific or combined.

Because of Ukraine’s accession to the WTO, the average tariff rate dropped to 4.95%. In 2011, it decreased to 4.8%.

The Law on Import Tariff Duties of Ukraine No. 584-VII establishes the existing rates of customs duties.

In addition to customs duties, a number of goods are subject to mandatory payment of excise tax.

The list of goods subject to excise duty and tariffs in Ukraine can be found in article 215 of the Tax Code of Ukraine No. 2755-VI.

  • Tobacco products, tobacco and manufactured tobacco substitutes;
  • Liquids used in e-cigarettes;
  • Ethyl alcohol and other distillates, alcoholic beverages, beer;
  • Passenger cars, bodies for them, trailers, motorcycles, vehicles intended for the carriage of 10 or more people, trucks;
  • Fuel;
  • Electricity.

Excise tax is calculated as a percentage of the declared customs value, customs duties and fees that must be paid when importing products.

Payment of excise taxes and tariffs in Ukraine must be made in the national currency of Ukraine at the rate of the National Bank of Ukraine on the day of payment.

The VAT rate for most goods is 20%.

VAT refunds are carried out automatically based on the Register of VAT Refund Claims. VAT refunds are paid in chronological order from the date of receipt of applications.