In Ukraine, starting August 1, an exemption from value-added tax (VAT) will come into effect for all social service providers. The main condition for receiving this benefit is inclusion in the Register of Social Service Providers and Recipients.
This is reported by Finway
Benefits of VAT exemption for social service providers
This legislative initiative aims to reduce the financial burden on legal entities and individual entrepreneurs engaged in providing social assistance and support to vulnerable populations. The Ministry of Social Policy emphasized that the new measures will make social assistance more accessible, as well as expand the market and attract new participants to the social services sector.
“Changes to the legislation will help reduce the financial burden on providers and make assistance more accessible,” the Ministry of Social Policy reported.
Additionally, the VAT exemption will create additional incentives for competition in the sector, where the main driving force will be the quality of services provided rather than tax advantages. A reduction in bureaucracy and an increase in state support for people in need of assistance are also expected, and national legislation will be aligned with European standards, where similar tax benefits are already in place.
Who can benefit from the new exemption and how to apply
Social service providers in Ukraine include legal entities, individual entrepreneurs, as well as state, municipal, private, and non-profit organizations specializing in assisting individuals in difficult life circumstances. Among them:
- territorial centers for social services;
- nursing homes for the elderly and people with disabilities;
- centers for social and psychological assistance;
- centers for victims of domestic violence;
- charitable foundations;
- companies providing home care and support services;
- religious organizations engaged in social work;
- individual entrepreneurs providing care for the elderly, offering caregiver services, rehabilitation, or psychological support.
To be included in the Register of Social Service Providers, a relevant application must be submitted:
- online through the social portal of the Ministry of Social Policy, where a personal account for social service providers is available;
- in writing, by contacting social protection authorities or administrative service centers at the location of the organization’s legal registration.
Mandatory documents include an application and a list of social services provided by the organization. The application review takes up to 5 working days, and a notification of the decision is sent to the email address specified when submitting the documents.