Social Service Providers Exempt from VAT

The Ministry of Social Policy of Ukraine is working to develop the social services market as an important tool to support people who find themselves in or are at risk of difficult life circumstances or crises.

To make services more accessible, reduce the financial burden on social service providers, stimulate the social services market, and align national legislation with European practices, the Ministry initiated legislative changes to exempt social service providers from value-added tax (VAT).

The Verkhovna Rada supported and voted in favor of these changes.

From now on, the activity of providing social services by providers of any ownership form is exempt from VAT. The condition for providers is that they must be included in the Register of Social Service Providers and Recipients. The changes take effect on August 1.

"Exempting social service provision from VAT is a real step toward ensuring accessibility of social support for citizens, supporting the civil sector, and fulfilling the state’s social obligations to people. We hope these changes will encourage greater provider engagement, their development, and the improvement of service quality," said Minister of Social Policy Oksana Zholnovych.

Why are these changes important?

• Conditions have been created to allow social service provision on equal terms for all providers, ensuring competition based solely on the quality of social services.
• A new incentive has emerged for greater involvement of social service providers in various projects, their development, and the enhancement of specialist competencies.
• Competitive conditions have been established to attract as many providers as possible to meet the needs of respective communities.
• The level of bureaucratic burden on the provider market has been reduced.

As a reminder, joining the Register of Social Service Providers can even be done online. Details at the link: https://bit.ly/4klBupi

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