Sales turnover of goods aimed at developing social sphere exempt from VAT

A presidential decree “On additional measures to further accelerate the implementation of projects carried out with international financial institutions and foreign government financial organizations” was adopted.

According to the document, until January 1, 2028, turnover on the sale of goods (services) purchased by budgetary organizations, state-owned enterprises and legal entities in the authorized capital of which the state share is 50% or more is exempt from value added tax.

Moreover, these goods (or services) must be purchased within the framework of projects implemented in whole or in part at the expense of public external debt raised from international financial institutions and foreign government financial organizations for the development of social sphere and infrastructure.

The import of these goods is also exempt from VAT.